Tax Fraud/Embezzlement? Not a CPA - financials show bills being paid but their not money is going elsewhere is this tax fraud?

The company I worked for as ED consistently had financial irregularities. From AP/AR, statements, to financial reporting. I brought irregularities to their attention it was a battle between accountant and myself, then after much documentation I took it to Director of Ops (son in law of managing owner) then took to said owner. I finally took stand after reconciling accts bringing in 2 m and financials reporting us reinvesting 2m into business every yr, bills were not being pd. We were being sued by half of our vendors, money was being transfered to other facilities but never to the tune of 2 m approx 500k after bonds, taxes, loans and support to other facilities. Accrual accounting note bills in 08 financials as paid we are being sued for in 2010. I took a stand, I have been fired!

Omaha, NE -

Attorney Answers (3)

Ilene L McCauley

Ilene L McCauley

Estate Planning Attorney - Scottsdale, AZ
Answered

I would strongly recommend that you retain the services of a tax attorney with a strong back ground in white collar crime. Tell the attorney everything that happened. It is important that you protect yourself and the best defense is a good offense.

If you are concerned about being fired, you may want to see a labor lawyer who represents employees. However from your comments I don't think you want to go back there.

This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, I am now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

Peter J Tomao

Peter J Tomao

Tax Fraud / Tax Evasion Attorney - Garden City, NY
Answered

Your question didn't define your duties as "ED" - Executive Director? I'm also not clear if you work for a publicly traded company. However, it is important that you consult with competent counsel. You should start with an attorney with a strong background in tax fraud and white collar crime. Through that attorney you can consult with an employment attorney. Don't make the mistake of focusing on losing your job. Whie that may have a great immediate impact on you and your familty that job is gone. Now it's time to make sure that you don't go down with it. From what you are saying it sounds like the IRS and the FBI may be asking questions soon and you should be ready. Good luck.

THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. Answering this question does not create an attorney-client relationship or otherwise require further consultation.

Circular 230 Disclosure: Pursuant to U.S. Treasury Department Regulations, I am now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. A taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Henry Daniel Lively

Henry Daniel Lively

Tax Lawyer - Costa Mesa, CA
Answered

I agree with the other attorney, but I also believe you should seek the services of an employment attorney to determine whether you have any actions against the employer.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this information cannot be used to eliminate penalties with the IRS or any other governmental agency.

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