YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.
Client Testimonials
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THE BEST LAWYER ANYONE COULD ASK FOR.
The BEST LAWYER ANYONE COULD ASK FOR!!! Todd changed our lives! He’s not JUST a lawyer representing us for a case. Todd and his office have become Family. When we entered his office in August of 2022, we entered with such anxiety, uncertainty, and so much stress. Honestly we were very lost. My husband and I felt alone. How could a lawyer who didn’t know us, know our family, know our background represents us, When this could change our lives for the next 5-7years that my husband was facing in Federal jail. By the time our free consultation was over with Todd, we left his office at ease. All our questions were answered and we had a sense of relief.
Understanding Tax Avoidance and Evasion: Where is the Line Drawn?
Federal tax law makes an attempt to delineate a very clear distinction between tax avoidance, which at worst only exposes the Tax Practitioner and his or her client to possible civil penalties, and tax evasion, for which criminal penalties could apply to all parties involved. In Gregory v. Helvering, 293 U.S. 465 (1935), the Supreme Court defined permissible tax avoidance as actions that “reduce, avoid, minimize, or alleviate taxes through wholly legitimate means”. In contrast, evasion is about tax avoidance that is ordinarily accomplished by way of an element of deceit or concealment and at times patently illegal avenues. Taxpayers are legally entitled to select the most tax efficient alternative to structure any transaction. In the Helvering case, it was stated that “[t]he legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted”…
Although it is generally agreed that taxpayers are entitled to avoid taxes, this historical controversy stems from the fact that in order for the structuring of a tax avoidance transaction (or transactions) to hold up to governmental scrutiny and thus fend off being recharacterized or just disregarded, the transaction structure hast to be compliant with the totality of tax law as currently enacted which includes statutory and common-law requirements such as the Economic Substance, Sham Transaction, Step Transaction, and Substance Over Form Doctrines, and the Business Purpose Test.
The Statutory and Judicial Restraints on Tax Avoidance
There are judicial and statutory constraints on tax reduction strategies of general application. These include the Economic Substance, Sham Transaction, Step Transaction, and Substance over Form Doctrines, and the Business Purpose Test. These can all be traced back to the Supreme Court’s holding in the landmark Gregory v. Helvering case. This case was about a taxpayer who formed a corporation chiefly for the purpose of exploiting the tax-free reorganization provisions so as to avoid gain recognition on a planned subsequent sale of stock to be transferred to the newly formed Corporation. In Gregory v. Helvering, the Court in found that the taxpayer was in compliance with each and every element required by statute and so a statutory reorganization was achieved. The judge held that the motive of the taxpayer to avoid tax in and of itself was not enough to render impermissible what the reorganization statute clearly allowed. It went on to focus on whether what was done, apart from the tax motive, was the act that the statute intended. Ultimately, the court answered that question in the negative, holding that reorganization was not accomplished, but it was simply “a transfer of assets by one corporation to another in pursuance of a plan having no relation to the business of either”.
Use of Tax Shelters
Tax Court consistently frowns upon losses, deductions and credits from transactions that it deems to be tax shelters via attack as a sham transaction, or by not respecting the form the transactions takes and determines the associated income tax consequences accordingly. For a transaction to be respected, it must be motivated by business considerations instead of by attractive tax avoidance benefits gained via the use of meaningless labels.
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.
The definition that the tax court a generic tax shelter as a tax shelter that lacks statutory authority and has the following characteristics:
The main intention of the associated promotional materials surrounded tax benefits.
The taxpayers using the shelter accepted the terms of purchase in the absence of price negotiation.
The assets that were purchased consist of prepackaged property rights which are difficult to value in the thin air environment in which they were sold and, invariably, are substantially overvalued in relation to the property rights actually purchased.
The property rights have been acquired or created at a comparatively low cost shortly before the transactions under scrutiny.
The consideration was deferred via promissory notes which are often nonrecourse in form or in substance. Transactions that are identified as generic tax shelters in the past have included investments in the cable television industry, master music recordings, inventions, mining activities, films rights, art packages, videotape recordings, and luxury yacht leasing arrangements.
The Civil Penalties Related to Tax Shelters
There are penalties surrounding reportable transaction understatements, which increase when the underreporting is coupled with non-disclosure and in which fraud is deemed to have occurred. Civil penalties may be levied against taxpayers who participate in reportable transactions or abusive tax shelters, and thus understate their tax liability.
The fine for failure to disclose a reportable transaction is $10,000. Should the shelter be a listed transaction, the penalty goes up as high as $200,000 ($100,000 for individuals).
Possible Criminal Liability for Tax Practitioners
It is important to emphasize the obvious detail that tax evasion is a rather different situation than tax avoidance is. Tax avoidance involves the meditated legal structuring of one’s financial affairs so his or her tax liability is legally reduced or minimized. Tax avoidance is not against the law. As one famous judge said it, “one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.” Helvering v. Gregory, 69 F.2d 809, 810-11 (2d Cir. 1934). Tax evasion, in contrast, is against the law. It involves the willful attempt to avoid paying tax liabilities after it has been incurred.
A tax practitioner may be found guilty to the same extent as the taxpayer themselves. This is because in Section 7201, the scope of tax evasion is rather broad. Specifically, Section 7201 provides that tax evasion includes a individual’s attempt “in any manner”—including helping someone else—“to evade or defeat any tax” or its payment. Therefore, the statute allows the IRS to prosecute any taxpayer for the evasion of another person’s tax liability. The defendant does not have to be the taxpayer in question themselves.
