Attorney Tax Misconduct Results In 3-yr Suspension

In a case addressing an attorney’s tax misconduct, Matter of Seedorf, the Appellate Division disciplined an attorney based upon a federal conviction for tax evasion. The attorney admitted that from 2009 to 2019, he intentionally evaded payment of a significant part of his federal income taxes by failing to file personal tax returns and other means. The federal judge sentenced him to six months in prison, three years of supervised release, and a fine of $55,000, which he paid along with court fees and $298,970 in back taxes and penalties to the IRS.

Significant Mitigation Is Not Enough To Warrant Lesser Sanctions For Tax Misconduct

The Appellate Division found significant mitigation, noting that:

As to mitigation, respondent is active in his community volunteering with numerous events, communities and boards; he cooperated with the United States Attorney’s Office and the AGC during their respective investigations; he is well regarded in the legal community; he expressed his remorse and contrition for his misconduct; and given the circumstances of the misconduct and the penalties he has already received, including financial penalties and the interim suspension from the practice of law, there is little likelihood that respondent’s misconduct will recur.

Despite the substantial mitigation, however, the Court imposed a three-year suspension, noting that it had previously imposed two- to three-year suspensions on attorneys convicted in cases involving similar federal tax-related misconduct. Indeed, an attorney’s tax misconduct can result in serious discipline for attorneys, as this case illustrates. A three-year suspension (plus the time it takes to obtain reinstatement, which is not automatic) is a severe penalty and one that can have serious consequences for an attorney’s career and reputation. This case highlights the importance of attorneys being vigilant about their tax obligations and seeking guidance when necessary to avoid any misconduct.

Avoid The Pitfalls When It Comes To Filing Your Law Firm’s Taxes

Don’t let tax issues become a problem for your law firm. At Law Ledgers, we specialize in helping attorneys navigate the complex world of tax compliance and regulations. We understand that tax-related misconduct can have serious consequences for attorneys and their firms, and we are here to help you avoid these issues. Contact us today to schedule a consultation and see how we can help you protect your firm and your personal assets from tax-related misconduct.

Please note that the information provided on this website is for general informational purposes only and is not intended as legal or tax advice. The information is subject to change, and it is important to consult a specialist before making any decisions. Law Ledgers provides accounting services to New York lawyers and law firms, including escrow protection, tax advice and bookkeeping administration. Contact us today for personalized support.