Tax Evasion Contributes To Loss Of Professional License

If you are avoiding your tax obligations, you risk even more than civil and criminal prosecution. A collateral consequence of a tax delinquency may be loss of your driver’s and/or professional license.

A number of states mandate that individuals and businesses with unpaid state tax liabilities satisfy those debts before renewing their licenses. In 2013, for example, officials in New York notified 17,700 state residents who owed more than $10,000 in NY state back taxes that their driver’s licenses would be suspended if they didn’t pay up or at least establish a payment plan. More than a third of those targeted came forward and the state collected over $56 million in revenue.

Los Angeles lawyer disbarred for tax evasion

On October 28, 2017, Los Angeles attorney John Henry Edwards III was disbarred after years of disciplinary actions. During his recent (fifth) disciplinary hearing, Edwards was accused of commingling personal and client funds, and for concealing money from the California Franchise Tax Board (FTB).

The discipline report indicates that from 1997 through 2014, Edwards only filed tax returns twice, and owed more than $100,000 in back taxes. When the FTB levied his personal and business accounts, Edwards used an inactive client trust account to conceal funds and avoid the tax levies. This act of “moral turpitude,” combined with a history of suspensions and probation violations, was sufficient to warrant a revocation of his license to practice law.

Let us help you resolve your tax problems

The suspension of a professional license is widely regarded as the most severe collection actions available to the government and state licensing agencies, because it effectively discontinues your income – or at least a major source of it. If you are dealing with unpaid back taxes, we can help. Contact the tax law firm of Moskowitz, LLP today.