Los Angeles Tax Fraud Lawyers

Los Angeles Tax Fraud Lawyers: When Tax Fraud Becomes A Crime Involving Moral Turpitude

In California, a tax fraud conviction doesn’t just cost you money. It costs you everything you built. Your medical license. Your law license. Your real estate license. Your immigration status. Your ability to work in the industry you spent decades entering. That’s because California classifies tax fraud as a Crime Involving Moral Turpitude – and that classification triggers consequences that follow you for the rest of your life.

If you’re a professional in Los Angeles – a doctor, lawyer, accountant, nurse, contractor, real estate agent, financial advisor – the stakes of a tax fraud charge aren’t just about what you’ll pay. They’re about whether you’ll ever practice your profession again.

What “Moral Turpitude” Actually Means For Your Future

California tax fraud under Revenue and Taxation Code Section 19705 isnt just a tax crime – its classified as a Crime Involving Moral Turpitude. A CIMT is a crime the law considers morally wrong because it involves fraud, deceit, or dishonesty.

You spent eight years becoming a doctor. And a single tax fraud conviction can trigger a proceeding before the Medical Board of California that ends with your license suspended or revoked. Most licensing boards require you to self-report when your ARRESTED – not convicted, arrested.

And heres the part that catches people completly off guard: this follows you forever. Even after you serve your sentence. Even after you pay your fines. That CIMT conviction sits on your record permanently.

The FTB Knows About Your IRS Problem Already

People assume they can deal with federal tax issues without California finding out. The California Franchise Tax Board has a data-sharing agreement with the IRS. They recieve daily and weekly reports.

If California decides your case warrants criminal investigation, it goes to the Criminal Investigation Bureau. These arent auditors with calculators. These are armed peace officers who can execute search warrants and arrest you.

The Entertainment Industry Target On Your Back

Los Angeles sits in the Central District of California – the largest federal judicial district in the country, serving approximately 19 million people. The entertainment industry generates exactly the kind of high-income, complex-structure situations that attract prosecutorial attention.

Wesley Snipes learned this lesson. One of the highest-paid actors in Hollywood, he was convicted on three counts and sentenced to three years in federal prison. His fame didnt protect him – if anything, it made him a higher-profile target.

The IRS maintains a conviction rate above 90%. They love making examples of celebrities because it sends a message to everyone else: pay your taxes.

When California AND Federal Prosecutors Both Want You

In Los Angeles, you dont just face one government – you potentialy face two. A single course of conduct can violate both federal and state law. Federal prison and state prison. Federal fines and state fines.

Double jeopardy dosent protect you here. The “dual sovereignty” doctrine means that the federal government and California are considered seperate sovereigns. Your facing potential federal charges carrying up to 5 years per count PLUS potential California charges carrying 16 months to 3 years.

The Immigration Trap Nobody Mentions

If your a non-citizen living and working in Los Angeles, a tax fraud conviction carries a consequence that most people dont think about untill its to late: deportation. Immigration law treats Crimes Involving Moral Turpitude seriously. A CIMT conviction can make you deportable or inadmissible.

The petty offense exception dosent help in most tax fraud cases. California tax fraud under RTC 19705 carries a maximum of three years. Its not a petty offense. Its a deportable offense.

Hollywood Examples That Prove Fame Doesnt Protect You

Mike “The Situation” Sorrentino from “Jersey Shore” faced a nearly $9 million tax bill. He pleaded guilty and served eight months in federal prison.

Teresa and Joe Giudice from “Real Housewives of New Jersey” were indicted on 39 counts. Teresa served 15 months. Joe served 41 months. Their show continued airing while they faced criminal proceedings – but that content didnt keep them out of prison.

The Only Path That Preserves Your License

The first priority isnt paying back taxes. The first priority is understanding wheather youve committed conduct that could be prosecuted criminally.

If criminal exposure exists, the strategy has to account for the CIMT consequences. A plea to a lesser offense that dosent constitute a CIMT might preserve your license. For non-citizens, the immigration analysis has to happen simultaniously with the criminal defense.

Voluntary disclosure programs exist for people who come forward before investigations begin. The window for these options is limited. Once the FTB opens a criminal investigation, the voluntary resolution paths close.

Why Los Angeles Specifically Makes This Harder

Los Angeles combines every factor that makes tax fraud prosecution more likely and more severe. The Central District of California processes more cases then almost any other federal court. California’s high tax rates mean larger amounts at stake. The FTB’s robust enforcement mechanisms mean state prosecution is a real threat.

The prosecutors know that professionals have more to lose. They know that the threat of license revocation creates leverage. They use these factors in plea negotiations, in sentencing recommendations, in every aspect of the case.

The FTB is watching. The IRS is watching. Your professional licensing board is watching. Appeals go to the Ninth Circuit Court of Appeals. If theres exposure in your tax situation, the time to address it is now. Not when the peace officers knock. Now.