Tax Law

We have clients who have experienced tax problems that result in various collection activities, including relating to closing a business. When that threat is made, we can work with the taxpayer immediately to explore options that may be available. In some situations, we are able to work out resolutions that allow for a business to remain open while we work on outstanding tax liabilities with the tax agencies and/or contact persons.

Levies Against Employers/Bank Accounts – St. Clair County, Illinois Tax Law Firm

We are often hired by clients who have tax problems and who may receive notices of levy of federal and/or state taxes against their employers or bank accounts. In many instances, there are exigent circumstances and not much time to act. The employee is concerned with keeping his or her job, how much may be taken and their finances in the event they do not receive their normal paycheck. We generally work with the taxpayer to explore options that may be available including working with the federal and/or state tax agency in regard to the underlying tax liabilities.

Handle Cases in Excess of $24,000,000.00 – Metro East, Illinois Tax Attorneys

We have been involved in federal and state tax cases for decades. Although our clients have included those that have owed the Internal Revenue Service more than $24,000,000, we handle many cases where tax liabilities may be $5,000 or less, or within the $5,000 to the $15,000 range, or in excess of $15,000, such as $100,000 to $250,000 or more. In those situations, many times the interests and penalties approach or exceed the amount of the underlying tax claimed due and owing.

Amended Tax Returns – St. Clair County, Illinois Tax Law Attorneys

Our tax system is based on self-assessment. That means each of us are responsible for computing taxes, filing tax returns and paying tax liabilities. Sometimes, for various reasons, tax returns are not prepared properly or all legitimate deductions are not taken, or taxes can be overstated. If not paid, this can also result in additional accruals for interest and penalties. With any tax case, we work with the taxpayers to make sure tax returns are correct. If tax returns are not correct, depending on the facts and circumstances, we discuss filing amended tax returns with the client.

Doubt as to Collectability/Doubt as to Liability  – Madison County, Illinois Tax Law Firm

Sometimes resolutions can be reached in regard to tax liabilities, including taxes, penalties and/or interest, based on doubt as to collectability and/or doubt as to liability

Bankruptcy and Taxes – Madison County, Illinois Tax Lawyers

We are often consulted regarding tax liabilities as same may be impacted by bankruptcy. Sometimes these cases have to do with individuals where there are tax liabilities claimed due and owing, even after a bankruptcy has been filed. In some cases, bankruptcies are dismissed, including Chapter 13 bankruptcy cases, with tax liabilities still claimed due and owing. In other instances, there can be successful completion of bankruptcy cases, but with tax liabilities still claimed owed. We have also conferred with individuals regarding discharging tax liabilities. In those instances, our analysis includes the type of tax, whether or not certain kinds of penalties have been asserted, the conduct of the taxpayer and many other variables.

Audits – Southern Illinois Tax Attorneys

We provide representation in preparation for and representation at audits, both federal and state. This usually includes working with the taxing agency in regard to deciding what documents or information to produce, the actual production and review of documentation and information and providing an interface or Ago between the taxing agency and the client. In certain situations, depending upon the circumstances, it may not be recommended that there be direct contacts between the taxing agency and the taxpayer, at least initially, and until there is some control over the case and potential consequences are properly evaluated.

Breached Installment Payment Arrangements – Attorneys HandlingCases with Internal Revenue Service and Illinois Department of Revenue

We have represented clients over the years in regard to installment payment arrangements, including breach of installment payment arrangements, or situations where promises have not been kept that have been made to the taxing agencies. These situations often involve the taxing agency making demand for immediate payment, or proceeding with wage garnishment (employer), non-wage garnishment (bank accounts), etc.

Criminal Tax Cases – Federal Tax Cases and State Tax Cases in Metro East, Illinois

We have represented taxpayers over the years in regard to criminal tax prosecutions, both at the state and federal level. With respect to criminal tax cases, the prosecutor has to show a taxpayer is guilty beyond a reasonable doubt to sustain the burden of proof. Therefore, the initial actions by the taxpayer, as well as decisions being made regarding whether or not there is going to be cooperation, can be critical for the client, including analyzing matters that may not be of apparent immediate importance. Criminal tax cases at the state level often have to do with income tax, sales tax, use tax, and/or withholding tax. In many instances, taxpayers have had issues that extend over a number of years. Criminal tax cases at the federal level in many instances involve income taxes or employment taxes. In some situations, there are both federal and state tax issues for the same years, depending on the taxpayer and the circumstances.

Joint Investigations – Tax Law Firm Handling White Collar Crime Issues

There are sometimes joint criminal and civil federal tax and state tax investigations, but usually criminal tax investigations take precedence for a variety of reasons. Sometimes criminal federal tax investigations involve multiple agencies, such as the Internal Revenue Service, Federal Bureau of Investigation, etc. Sometimes after federal or criminal tax investigations and/or prosecutions, there are civil federal tax and state tax audits or other activities.

Tax Planning – St. Clair County, Illinois Tax Law Firm

We are experienced and have expertise in the areas of business and commercial transactions, including where there are multiple entities as well as multiple shareholders/partners. We provide representation regarding the economics of contemplated transactions, including ensuring that clients are aware of tax consequences that may arise, including in the future, in regard to transactions. We have experience in handling the sales of businesses, real estate investments, commercial properties, professional practices, etc.

Trust Officer Embezzling From Financial Institution – Belleville, Illinois Tax Law Firm

We represented a long-time employee of a major financial institution located in St. Louis. She was a trust officer. The trust officer withdrew funds from a depositor’s account and placed the funds in her own account which she opened at the same financial institution. The money never left the bank. When the fraud was discovered, restitution by the trust officer was made. The bank was made whole. The depositor was made whole. However, the client had substantial unreported income during the year of embezzlement. Since the monies were repaid the following year, there was no deduction or offset available to the client for tax purposes. That meant that even though the client repaid all of the unreported income, but in a subsequent year, there was substantial tax, penalties, and interest owed by the client for the year of embezzlement. The client served two (2) years in federal prison. After she was released, we represented her in regard to tax liabilities sought to be collected of in excess of $300,000. We were able to proceed with a bankruptcy that resulted in discharge of tax liabilities once appropriate time had passed from the dates amended tax returns were filed to the date of the bankruptcy.

Fictitious Dental Lab – Monroe County, Illinois Tax Attorneys

We represented an accountant in a criminal tax case involving several dentists in the Southern Illinois area. Pursuant to a scheme, payments were made by the dental practices to a dental lab. The problem was the dental lab did not exist. The dentists and their accountant were investigated for criminal tax fraud. The dentists claimed that they were following the advice of their accountant. The accountant was charged with various felony counts, pled guilty to a single count and received a sentence of probation.

Hairdresser Not Reporting Income – Metro East, Illinois Tax Law Firm

We represented a hairdresser that had businesses in several cities. Based on the lifestyle and expenditures of the hairdresser, including trips, luxury automobiles, etc., the Internal Revenue Service was able to show, by an indirect method of proof, that expenditures were exceeding reported income. The hairdresser was charged with various counts of tax evasion. There was a joint investigation which involved tax agencies in Illinois and Missouri. There was a plea negotiation in regard to which the client pled guilty to a single felony and received probation. After the client allegedly violated the terms and conditions of the probation, there were subsequent proceedings which almost resulted in the client being sentenced to prison. However, the presiding Judge gave the client another chance and allowed the probation to continue. As a result, the client did not receive any jail time for the tax evasion and the client was not sentenced to prison for a violation of parole.

Representation of an Attorney Regarding Tax Evasion – Madison County, Illinois Tax Law Firm

We represented a city attorney in Southern Illinois who was involved in a scheme whereby out-of-state truckers on an interstate highway were ticketed. They were allowed not to return to the area with a disposition of their case that included a fine and costs. The problem was that the city attorney was funneling the amounts received into a separate account, and not for the city. In other words, the tickets were being dismissed, the amounts were paid by the truckers but the amounts paid were not being received by the city. The attorney was charged with filing false tax returns because he did not report the income that he wrongfully received from the scheme.

Illinois Department of Revenue Criminal Tax Case Against Insurance Agent – Metro East, Illinois Criminal Tax Law Firm

We represented an insurance agent in Southern Illinois that was charged with not filing tax returns and/or filing false tax returns with the State of Illinois. The insurance agent was a person of high standing and repute in his community. He was a good family man, attended church regularly and was active civically in his town. However, without any justifiable reason, he simply chose to stop filing tax returns. By the time he was investigated by Special Agents with the Illinois Department of Revenue, psychological and psychiatric defenses were considered, since the client had no prior criminal record and was a successful business person of considerable substance and wealth. The Illinois Department of Revenue took the position that the taxpayer had a financial motive – he simply wished to keep the money instead of paying taxes. In the end, the taxpayer pled guilty to a single felony count and did not serve any jail time. We were able to avoid publicity in the area where he serviced his clients. From the civil side, after all tax returns were filed, and assessments made, the taxpayer had funds to pay his tax liabilities. There was a concern regarding his professional license, so that he could continue to act as an insurance agent in the State of Illinois. Because of his exemplary behavior in other areas, and although there were in excess of fifty (50) tax returns he had not filed, including individual and corporate, in excess of ten (10) years, we also had a successful result with the Illinois Department of Financial and Professional Regulation, Division of Insurance and the client’s license was not revoked or suspended.

Church Pastor Did Not Pay Taxes – Metro East, Illinois Tax Lawyers

We represented the pastor of a religious organization in regard to not paying taxes on his salary earned serving his congregation. There was concern regarding how it may look to the parishioners if their pastor was having his salary levied by the Internal Revenue Service. We were able to work with the pastor, and the Internal Revenue Service, and avoid any criminal action, as well as avoid any negative publicity and the pastor was able to maintain his reputation with the congregation.

Tax Fraud – St. Clair County, Illinois Tax Law Firm

We represented a person who was involved in tax fraud/bankruptcy fraud. The tax fraud had to do with receiving payoffs or kick-backs from a local school board in regard to contracts. The bankruptcy fraud had to do with the client not fully disclosing all assets, and their values, when he filed his bankruptcy case, apparently fearing that his limited bankruptcy exemptions would not protect all property that he had accumulated. In the end, he agreed to cooperate with respect to other persons of interest being investigated by the Federal Bureau of Investigation and prison time was not sought by the prosecuting attorney.

Loans Versus Investments – Blake Law Group, P.C. Attorneys at Law 
“AV” Rating – Belleville, Illinois With Highest Possible Rating

We had a client that received monies from long-time friends and elderly individuals. They thought they were making investments into a strategy that would payoff handsomely for them. The client thought she could treat monies received as loans. However, she did not give written promissory notes at the time monies were received and there was no stated rate of interest. The Internal Revenue Service took the position that the monies received were not loans, but were investments or profits, and that the client should have declared income in the year received, and paid appropriate taxes. Not only did the client have to pay taxes, penalties and interest, she was also sued by the so-called investors when she was unable to repay the amounts they paid to her.

Internal Revenue Service – St. Clair County, Illinois Law Firm Handling Cases with the Internal Revenue Service and Illinois Department of Revenue

We have been representing clients before the Internal Revenue Service for years. This type of work can include taxes, penalties and interest, clients that have not filed tax returns for years, including strategies relating to criminal and civil, working on Offers in Compromise with respect to liability and collectability, installment payment arrangements and other matters. We also represent clients at audits, including at our offices, or the client’s place of business, or at the Internal Revenue Service offices.

Illinois Department of Revenue – Metro East, Illinois Law Firm Handling Tax Cases with Illinois Department of Revenue and Internal Revenue Service

We have been representing clients for years with respect to the Illinois Department of Revenue. Those matters could include sales tax, use tax, income tax, state tax, persons or businesses that have not timely filed all tax returns, persons or businesses that are being audited, persons or businesses that do not have sufficient funds to pay. We also represent clients at audits, including at our offices, or the client’s place of business, or at the Illinois Department of Revenue offices.

The “Tax Doctor” had hair salons in E. St. Louis, St. Louis, Houston and Los Angeles – Blake Law Group, P.C. “AV“ Rated Tax Law Firm

We represented a cosmetologist who purportedly had hair salons in E. St. Louis, St. Louis, Houston and Los Angeles. He was suspected by the Federal Bureau of Investigations and the Internal Revenue Service of dealing in drugs and not reporting income received from his drug sales and/or hair salons. Pursuant to a federal indictment, he was charged with a variety of felony counts. We recommended to the client that tax returns and/or amended tax returns be immediately prepared and filed. There was a recommendation through the U.S. Attorney’s Office for Southern Illinois that the case be prosecuted. We met with the Department of Justice officials in E. St. Louis, Illinois and then in Springfield, Illinois, and ultimately in Washington, D.C. We were able to discover the quantity and quality of documentation and information that had been developed so that we were able to properly analyze and make recommendations to our client in regard to the posture of the case and strategies and options that were available. Ultimately, the Department of Justice and the U.S. Attorney’s Office agreed not to pursue drug charges. In regard to the tax felonies, we were able to successfully negotiate a plea and our client was placed on probation and was not sentenced to jail and never served any time in jail in regard to the single count conviction for tax evasion.

“AV” Rating – Metro East, Illinois Law Firm
Blake Law Group, P.C. has received an “AV” rating from Martindale-Hubbell Law Directory, the most trusted and respected service for rating attorneys in the United States. The “AV” rating is the highest possible rating for legal abilities and reputation by other lawyers.

Referrals – Blake Law Group, P.C. Attorneys at Law, Belleville, Illinois

We often receive referrals from other attorneys who may not practice, at least to the extent we do, in regard to certain areas of the law, including tax and business matters. As a result, this has increased our volume of cases and level of expertise in this area of the law.