California lawyer’s case underscores the government’s intensified efforts to prosecute tax evasion among high-earning professionals.
A California attorney has been indicted on federal tax charges for allegedly evading taxes, filing false returns, and failing to file tax returns. The indictment, unsealed in San Diego, accuses Robert Blair Krueger Jr., a securities law attorney, of attempting to conceal his income from the IRS while running his legal practice.
Allegations Against Krueger
According to the indictment, Krueger was the sole owner of The Krueger Group LLP, a San Diego law firm specializing in helping companies go public. From 2017 to 2019, he allegedly:
- Provided false financial information to his tax preparer
- Filed inaccurate tax returns that underreported his law firm’s earnings
- Failed to file personal federal tax returns since 2018
Federal prosecutors claim Krueger deliberately manipulated financial data to prevent the IRS from properly assessing his tax liability. The IRS Criminal Investigation Division is leading the probe.
Potential Penalties If Convicted
If found guilty, Krueger faces serious consequences, including:
- Up to 5 years in prison for tax evasion
- Up to 3 years in prison for filing a false tax return
- Up to 1 year in prison for each count of failing to file a tax return
His actual sentence will be determined by a federal district court judge, who will consider U.S. Sentencing Guidelines and other legal factors.
Legal Process and Presumption of Innocence
It is important to remember that an indictment is only an allegation. Krueger is presumed innocent until proven guilty in court. The case is being prosecuted by Trial Attorneys Erika V. Suhr and Robert A. Kemins of the Justice Department’s Tax Division.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg, reinforcing the federal government’s commitment to prosecuting tax fraud.
Growing Focus on Tax Fraud Cases
This case is part of a broader IRS crackdown on high-income individuals and business owners who attempt to evade taxes through false reporting or non-filing. The government is increasing enforcement against professionals who should be fully aware of their tax obligations.
IRS officials have warned that tax professionals and business owners will face severe penalties if they try to manipulate income records or hide earnings.
How Taxpayers Can Avoid Legal Trouble
This case highlights the importance of accurate tax reporting and compliance with federal tax laws. Taxpayers can take the following steps to avoid similar legal risks:
- Report all sources of income – Underreporting income can trigger audits and legal consequences.
- File returns on time – Failing to file taxes is a criminal offense.
- Use honest tax professionals – Providing false financial data to preparers can still lead to liability.
- Cooperate with the IRS – If faced with an audit or investigation, full cooperation can help avoid harsher penalties.
Final Thoughts
This indictment serves as a strong warning to professionals who attempt to deceive the IRS. As the government intensifies tax enforcement, business owners and high-income professionals must ensure they are fully compliant with tax laws. This article was republished from the U.S. Department of Justice Office of Public Affairs website.
As a professional – Revolutionize your tax workflow with our complete suite of tools: onboarding links, initial interviews, compliance planning, calendars, messaging, task management, and TaxMan for advanced tax research. Please sign up. Our resource directory also offers valuable links to assist in managing various financial and legal aspects of a business or individual.
Subscribe to Our Newsletter: https://bit.ly/4ilgFtk
You will get:
- Tax News & Regulations Updates
- New Court Cases Explained
- Upcoming Podcast Alerts
- IRS-ready Guides to Present or Share with Your Advisor
