Mar 31, 2018
Austin 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 equal to 75.
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 experience and will seek guidance from 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 strategy.
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 deeply explore.
Do You Need an Attorney for a Tax Fraud Case?
Tax fraud is a taxpayer’s intentional act to circumvent paying lawfully owed taxes. It includes tax evasion and wrongfully claiming tax credits or deductions. Tax fraud can result in serious criminal and civil penalties. If you have been accused of tax fraud and find yourself under criminal investigation by the Internal Revenue Service, a competent tax attorney could be a powerful ally in your corner. As an expert in issues you are facing, a tax attorney can assist you in navigating through the complex processes of the U.S. Tax Court.
Although you could represent yourself or have other types of professionals represent you in court, a tax lawyer is an expert in the laws that pertain to your situation. Another distinct advantage of securing the services of a tax attorney is that whatever you say to her is usually confidential. This means that she is not legally required to disclose what you share in the courtroom. This is not always the case with other professionals.
When you are searching for a tax attorney, you will need to know:
- Does the tax attorney have a Juris Doctor degree, and has he been admitted to the state bar?
- Has the tax attorney received specialized training in tax law?
- Can the tax attorney help you with accounting issues if needed?
- Can the tax attorney refer you to another specialist with more expertise regarding your areas of concern?
- What is the tax attorney’s fee schedule?
Tax law is highly technical and complicated. A tax lawyer is equipped with the experience and knowledge to handle the legal aspects of your tax circumstances. If you foresee challenges regarding tax fraud, consult with a tax attorney right away to help you avoid or alleviate severe civil or criminal consequences.
Austin Tax Fraud Lawyers