Monday, November 24, 2014

San Diego Tax Attorney Sentenced for Tax Evasion

Last Monday a US District Judge in San Diego sentenced Lloyd Irving Taylor to 5 1/2 years in federal prison

Former San Diego tax attorney sentenced for evading millions in taxes

Posted: Nov 17, 2014 6:40 PM PST Updated: Nov 17, 2014 6:40 PM PST

SAN DIEGO (CNS) - A one-time San Diego tax attorney and certified public accountant was sentenced Monday to 5 1/2 years in federal prison for using the identities of deceased children to create aliases that allowed him to evade millions of dollars in taxes. In handing down the punishment for Lloyd Irving Taylor, U.S. District Court Judge Michael Anello also ordered the 71-year-old defendant to pay about $2.2 million in restitution to the Internal Revenue Service.
Following a weeklong trial in June, a jury convicted Taylor of 19 felony charges, including aggravated identity theft, making false statements to a financial institution, tax evasion, corrupt interference with the IRS and lying on passport applications.
According to prosecutors, Taylor stole the personal information of dead children and used it to obtain fraudulent passports and other identifying documents, which he then used to open and maintain financial accounts so he could hide his income and assets from the IRS.
The stolen identities also allowed him to transfer funds between accounts and to buy assets, such as gold coins, as another means of skirting taxes, court documents state.
Similarly, Taylor created over a dozen fake churches and opened 31 related bank and investment accounts in their names. He then took advantage of the tax-exempt status of religious institutions to fraudulently claim that his income was not subject to federal taxes, according to the U.S. Attorney's Office in San Diego.
Among witnesses who testified during the trial was the brother of one of the deceased people whose identity was stolen, as well as an elderly blind woman whose Social Security number was filched by Taylor.
Despite working and earning money for over 40 years, Taylor filed federal tax returns just seven times, prosecutors said. All told, he failed to report about $5 million in income, on which he owed the IRS about $1.6 million, according to the U.S. Attorney's Office.

The sad news is that this is not the first tax attorney who has been convicted of tax evasion.  It is extremely important that when seeking tax advice as a business owners or individual that you vet your tax professional.  Ask questions to determine how long they have been an attorney.  Check to see if they have had any disciplinary actions.  Ask them if their clients get audited.   You should also check to determine whether the attorney previously worked as an attorney for the IRS, DOJ or FTB.  People who previously worked from the government understand the internal workings of the tax agencies.  People who did not, well, do not.

The last thing you need in your life is to receive bad tax advice and to find yourself the subject of an IRS civil examination or worse a criminal investigation.  Don't let this happen to you or your business.  


Whether you are a business owner needing basic tax advice or bookkeeping services or a taxpayer who is seeking assistance and may be in trouble with the IRS, know that the tax professionals at the Tax Law Offices of David W. Klasing are dedicated to being ethical and professional as well as highly effective. We will work diligently to ensure that we can secure you the best possible outcome for your situation or structure your tax transaction in a way that is most favorable to you, but will also do so within the parameters of the law. Call our Los Angeles tax lawyers today at (800) 805-9718 for a reduced-rate consultation and rest easy knowing that as our client, you are our top priority.