Last Updated on: 21st October 2023, 08:32 am

Tax Charges: Why You Need an Aggressive Tax Fraud Lawyer

Dealing with the IRS can be scary. If your being accused of tax fraud, your gonna want to find a lawyer who knows how to fight back aggressively. Tax fraud charges can lead to huge fines, even jail time. So you need someone in your corner whose ready to stand up to the IRS on your behalf.

In this article, we’ll break down:

• What exactly is tax fraud
• How the IRS investigates tax fraud
• What penalties your facing if convicted
• Why you need an aggressive lawyer to defend you
• Effective legal defenses that could get your charges reduced or dismissed

What is Tax Fraud?

Tax fraud refers to intentionally decieving or misleading the IRS by:

• Underreporting income on your tax returns
• Overstating deductions, exemptions, or credits
• Hiding accounts or assets
• Claiming personal expenses as business expenses

Basicly, its lying or leaving stuff out on your taxes to pay less then you owe. Some common examples include:

• Failing to report cash income from side jobs or gig work
• Inflating business expenses on Schedule C
• Hiding offshore accounts and assets
• Claiming fake charitable donations

While technically against the law, not all tax fraud is intentional. Sometimes taxpayers make honest mistakes or misinterpret complex rules. But intent doesn’t always matter – the IRS can still hit you with penalties.

How the IRS Investigates Tax Fraud

The IRS has sophisticated processes for detecting tax fraud. Here’s some of the main ways they flag suspicious activity:

• Automated systems – The IRS uses computer programs to search for red flags like large deductions or business losses year after year.
• Information reporting – The IRS gets copies of your W2s, 1099s, and other info documents. If these show income you didn’t report, it raises red flags.
• Whistleblowers – The IRS offers rewards to people who rat out tax cheats. Disgruntled employees, ex-spouses, etc often blow the whistle.
• Audits – IRS agents dig deep during audits, reviewing documentation and asking lots of questions to identify potential fraud.

If the IRS suspects fraud, they’ll launch a criminal investigation. This means digging even deeper into your finances, interviewing people you know, and potentially raiding your home or business to seize evidence.

As you can imagine, its no fun having IRS criminal investigators nosing around your life. A skilled tax attorney can often intervene early to convince the IRS their suspicions are unfounded, ending the investigation before charges get filed.

Penalties for Tax Fraud

If your convicted of tax fraud, your facing some potentially massive penalties:

• Prison – Willful tax fraud over $10,000 can result in up to 5 years in federal prison. Some big time evaders get 10 years or more.
• Fines – Fraud penalties are usually 75% of the unpaid taxes. So if you skipped $100,000 in taxes, you could owe $75,000 in fines.
• Interest – The IRS charges compounded interest on unpaid taxes, which racks up over time.
• Accountability – You may have to account for how you spent the money you didn’t pay in taxes.

The IRS often seizes assets like bank accounts, vehicles, or property to satisfy unpaid taxes, interest, and penalties. They can garnish your wages too. Bottom line – getting convicted of tax fraud can devastate your finances for years.

Why You Need an Aggressive Tax Attorney

With so much at stake, its critical to have an experienced tax fraud lawyer fighting for you every step of the way. Here’s why:

• Negotiation – An attorney can negotiate with IRS agents and prosecutors to reduce penalties or even get charges dismissed. IRS agents want to avoid lengthy court battles, so they’ll often make deals.
• Tax expertise – Navigating IRS rules and processes is incredibly complex. A knowledgeable tax attorney understands it inside and out.
• Courtroom skills – If your case goes to trial, an aggressive litigator can undermine the prosecution’s arguments and present persuasive defenses.
• Damage control – Even if convicted, a good lawyer can help minimize fines, interest, and jail time.

When facing tax fraud accusations, the worst thing you can do is go it alone. The IRS devotes huge resources to criminal investigations. Without an experienced guide, you’ll get chewed up.

Effective Legal Defenses

In some cases, skilled tax attorneys can get charges dismissed or penalties waived. Here are some of the most effective legal defenses:

You lacked intent

For many tax crimes, prosecutors must prove you knowingly and willfully violated tax laws. Your lawyer may argue you simply made a mistake or misunderstood complex rules. This can sometimes get charges reduced or dismissed.

No tax deficiency

The IRS can’t charge you with tax fraud if you didn’t actually owe any more taxes. Your lawyer can comb through your records to prove you reported everything accurately.

Duress

If you failed to pay taxes because of extreme personal, family, or business pressures, it may qualify as duress. This can sometimes justify a penalty reduction.

Diminished mental capacity

If you made errors on your taxes because of mental illness, dementia, etc, your lawyer may argue you weren’t fully responsible. This may persuade prosecutors to drop charges.

Statute of limitations

Tax fraud charges must generally be brought within 6 years. If the IRS delayed too long, a good lawyer can get the case thrown out.

An experienced tax fraud attorney will dig deep to find anything that casts doubt on the IRS’s case against you. The more holes they can poke in the prosecution’s story, the better your chances of avoiding conviction and harsh penalties.

The Sooner You Call a Lawyer, the Better

If your being audited or investigated for potential tax fraud, don’t go it alone. Call a lawyer immediately so they can get involved and start negotiating with the IRS on your behalf. The longer you wait, the harder it gets to defend yourself.

With an aggressive tax fraud lawyer in your corner, you’ve got a fighting chance of getting charges reduced or dismissed. You may even be able to settle with the IRS for pennies on the dollar compared to what they originally demanded.

Don’t gamble with your future. Find a great tax attorney now before things get out of hand.

Citations

26 U.S. Code § 7201 – Attempt to evade or defeat tax

How Criminal Tax Investigations Are Initiated | Internal Revenue Service

Tax Evasion vs. Tax Fraud: The IRS Cares About Intent | Nolo

What is the IRS Statute of Limitations or Deadline for Action on Audits?