On Thursday, October 12, 2017, Herbert Lindenbaum, a personal injury and medical malpractice attorney, pled guilty to tax evasion, following a nearly two-decade scheme to evade $3.4 million in taxes. The scheme involved paying family members for work they did not do in order to create the appearance that his firm was earning little to no income, disguising income by depositing business funds into his wife’s personal account, and using his firm’s funds for personal expenses. Lindenbaum faces up to five years in prison, as well as at least $3.4 million in restitution. Sentencing is set for January 11, 2018.
This case is evidence of the IRS Criminal Investigation (CI) Unit’s continued prioritization to investigate and prosecute attorneys in its fight against tax evasion. Speaking on a panel on International Tax Enforcement at a recent D.C. Bar event, IRS Deputy Chief of CI Eric Hylton noted that attorneys and accountants often serve as facilitators for tax evasion schemes and other financial crimes. As such, these professionals are viewed as a high priority in CI’s data-driven target-selection process, and face an elevated risk of investigation and audit.
Our Professional Team of Tax Attorneys and CPAs Can Help
If you are or suspect you may become the subject of an IRS audit or criminal investigation, contact the law office of Daniel Rosefelt & Associates right away. We have a team of experienced tax attorneys, CPAs, and IRS Enrolled Agents ready to help prepare a strong legal defense. Our office serves Maryland, Virginia, Washington, D.C., and the rest of the nation. Call or contact our office online today to request a confidential case consultation.