It’s not uncommon for people with high incomes to try to find tax strategies that will reduce the amount of taxes they have to pay. After all, nobody wants to pay more in taxes than they have to. And people who earn top salaries often have more motivation to find creative ways to minimize their tax burdens.
However, choosing the wrong way to go about this can lead to some serious tax problems — especially when there are large amounts of money at stake. Now, several NFL players and other wealthy people are saying that their tax attorney came up with unlawful schemes to help his clients claim millions of dollars in tax credits that were bogus.
As a result, the tax attorney has been prohibited from promoting his tax reduction techniques or preparing tax returns. Some of his former clients have filed lawsuits against him, saying that he committed malpractice and fraud in order to help them reduce their tax liabilities.
Apparently the man’s accounting methods were quite complex — which made it even more difficult to determine if fraud had been committed.
There are several ways in which people can reduce their taxable income levels and pay the government less. However, in many cases, if a method seems too good — or confusing — to be true, it probably is. An experienced New York tax attorney can help people who find themselves in trouble with federal, state or municipal tax authorities and attempt to help mitigate any possible punishments.