The co-owner and CEO of a California investment firm recently pleaded guilty to federal charges of tax fraud and wire fraud. According to reports, the 66-year-old Diamond Bar man operated a day-trading scheme that took in $49 million from investors from 2005-2011. He was arrested in October and now faces up to 23 years in a federal penitentiary for his tax crimes.
The fiscal cliff, Washington's latest catch-phrase, holds a surprise for California taxpayers seeking early filing opportunities. According to acting IRS Commissioner Steven Miller, the tax controversy looms trouble on the horizon for nearly two-thirds of America's nearly 150 million tax filers. The AMT tax controversy means that many California taxpayers may be affected by Congress' delay in acting on the fiscal cliff issue. The AMT laws were initially enacted as part of the Tax Reform Act of 1969 and imposed an additional tax to the regular income tax.
Facing prosecution from state or federal authorities on alleged tax violations can be a daunting prospect. However, despite the risk of facing prosecution for tax crimes, in many cases, there are circumstances that may mitigate or refute the charges filed by authorities. Two California residents face such charges, as they were charged with tax crimes and other offenses that prosecutors say was part of a large scale mortgage fraud scheme.