Mar 30, 2018
Arizona Tax Fraud Lawyers
In many tax audits done by the IRS, the agency is only interested in collecting taxes owed, interest, and with penalties. The IRS can impose a negligence penalty, along with a late filing penalty, and charge interest on all the above. In a tax audit, even in case the IRS suspect you have committed tax fraud, they could impose a civil tax fraud penalty. This penalty is typically equal to 75 percent of the tax you owe, plus interest on the penalty.
Based on the degree of fraud involved, the IRS auditor may ask a tax fraud expert to check over your case and see whether it ought to be sent for criminal prosecution. Normally, this specialist has expertise and will seek guidance of the IRS’ tax fraud attorney for help if it appears necessary.
The penalties for tax fraud are severe. You could get up to five years in jail, plus fines of $500,000, in addition to the expense of prosecution for each tax offense. When the criminal tax case is finished by the IRS criminal unit, it’ll be referred back to the IRS Examination Division in which the taxes are assessed. The IRS can add the civil tax fraud penalty in addition to the criminal tax fraud penalties. It’s important to understand that tax statements from civil or criminal tax fraud can’t be discharged through bankruptcy. The civil fraud penalty is dischargeable in a Chapter 7 bankruptcy.
Tax fraud is defined as intentional wrongdoing. To be accused of tax fraud, you must have an intentional violation. Mere carelessness isn’t tax fraud. The IRS looks for certain things when assessing whether fraud occurred, such as: understatement of income, inadequate records, failure to file, hiding assets, dealing in money, failure to make estimated cash payments, failure to cooperate with government, failure to make payments.
For those who have one of these issues and are audited by the IRS, you may need a tax fraud lawyer. Actions you take during a tax audit can transform the usual tax audit into a tax fraud case. By way of instance, lying or giving false answers to IRS investigators, delaying the analysis, or other activities to mislead IRS agents can indicate fraud.
Experienced tax fraud attorneys can help you navigate an IRS tax audit, and help you formulate a plan.
Is Tax Fraud a crime?
Tax fraud is a frequent charge which could result from real mistakes in reporting tax information to the IRS. Tax offenses are a few of the most ordinary white collar offenses, which affects business professionals and ordinary Americans. Underreporting income, failing to file taxes, or overstating deductions are grounds for audits. If the IRS finds cause further afield following someone falsifies their tax accounts – then the IRS will greatly investigate.
Tax Fraud: Do You Need An Attorney?
Is it really necessary to obtain an attorney to fight a tax fraud case if the IRS has come to you and stated that they believe that you are a tax cheat? In a one word answer, yes.
The fact is most people are going to be very scared if they receive a letter from the IRS stating that it is believed that they are responsible for having taxes that they have not taken care of. This is not something that you can just chalk up to a simple mistake and forget about it. Rather, the IRS is going to take this extremely seriously, and you should to.
Tax fraud is often actually nothing more than a little accounting oversight so to speak. That is to say that many people who are accused of having committed tax fraud actually did no such thing. They simply did not accurately state their taxes and thus did not pay all that they were supposed to have paid. Good luck explaining that to the tax man though. He is not going to want to hear it. He is going to believe that you are just saying what you think he wants to hear.
Don’t let the IRS dictate your financial life going forward. There are a lot of options available to you. The biggest thing you need to worry about though is obtaining a tax attorney who can negotiate on your behalf with the IRS. This is one organization that you definitely do not want to do combat with on your own. You need a professional who is well equipped with the knowledge and skills necessary to take on the IRS. Tax attorneys are the only way to go when it comes down to it. You will at least sleep better at night knowing that you have one working for you.