San Francisco Tax Attorney Sentenced To Prison For Failing To Report Income

SAN FRANCISCO – James P. Kleier was sentenced today to serve 12-months in custody for his failure to file tax returns for 2008-2010, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.

According to his plea agreement, Kleier, a practicing tax attorney and partner at Preston, Gates, & Ellis, LLP, from 1999 through 2005, and associate at Reed Smith, LLP, from 2005 through 2010, failed to report any income he earned from 1999 through 2010. According to court documents, for 2008, 2009, and 2010 Kleier earned $624,923, $476,088, and $200,734, respectively. He was ordered to pay past-due taxes to the government in the total amount of $650,993 for 2003, 2008, 2009, and 2010.

“Our tax system is vital to this country and our communities. The defendant, a tax attorney, knew that he was required to file tax returns and pay taxes. This office will continue to work with the IRS to ensure that each person pays his or her fair share,” stated U.S. Attorney Melinda Haag.

Special Agent-in-Charge José M. Martinez said, “The prosecution of individuals who brazenly attempt to avoid their tax filing and payment obligations and prevent the IRS from performing its mission is necessary to maintaining public confidence in our tax system.”

Kleier, of San Francisco, 58, was charged on May 1, 2013, with three counts of failure to file income tax returns. He admitted to failing to file tax returns for several years and pleaded guilty to one count. The sentence was imposed by the Honorable Laurel Beeler, United States Magistrate Court Judge, in San Francisco. Kleier was ordered to self-surrender in September 2014 to start serving his sentence.

Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.

(Kleier information )