Double Victory Against The IRS

Criminal Case:

In 1996, Weisberg and Kainen P.L., P.L. was retained to represent Jones, an insurance agent who was under criminal investigation by the IRS.¹ Jones had received funds from insurance companies, which the insurance companies later alleged were premiums, and not commissions to Jones. These insurance companies filed multiple lawsuits in three different states in state and federal courts against Jones. Not knowing if he would ultimately prevail in the litigation, Jones deposited the money into his personal account but did not declare it as income on his IRS Form 1040 income tax returns. Criminal Investigations of the IRS opened an investigation against Jones on the theory that these funds were illegally omitted from his income on Form 1040 income tax return in 1994 and 1995. The IRS recommended that Jones be indicted for multiple counts of tax evasion. The Department of Justice Tax Division agreed and referred the matter to the local United States Attorney's office for indictment. The attorneys at Weisberg and Kainen P.L., P.L. made multiple presentations to the IRS, the Department of Justice and the United States Attorney for the Southern District of Florida in Miami, including the live testimony of witnesses and memoranda of law. They were ultimately successful in convincing the United States Attorney's office not to indict Jones.

Civil Case:

Years went by, and in 2005, the Civil Examination Division of IRS issued a report concluding that Jones had committed civil tax fraud and that he owed the IRS $2,515,343.80 for 1994 and $897,592.56 for 1995, the same years that were at issue in the criminal investigation. The attorneys at Weisberg and Kainen P.L., P.L. continued to represent and defend Jones on what was now a civil examination. In February, 2009, after the filing of a Protest and multiple meetings with an IRS Appeals Officer from the Tampa, Florida IRS Office, the IRS conceded the entire civil case, essentially acknowledging that there had been no fraud and that Jones owed $0 for 1994 and $0 for 1995.

¹ The client's name has been changed to protect his identity.