As everyone knows, two things are certain in life: death and taxes. Taxes must be paid. People need to be aware what taxes they must pay and when they have to pay them. Payment can be highly complicated. People may reside in one state and work in another. They may have all sorts of income including a salary, dividend income, money from a business they own and child support. They may also have other issues such as an inheritance from a close relative or the sale of real estate. This is why people need to be aware of the kinds of laws that apply to their specific circumstances. It’s easy to make a mistake while filing one’s personal income taxes. If a mistake is made, there may be all sorts of issues that arise. A serious problem may not only lead to huge penalties but also possible imprisonment.

Tax Evasion

Tax evasion is also known as tax fraud. Tax evasion can take many forms. A private individual or a business owner may deliberately choose to under report their personal income or the income from their business. They can also choose to claim more deductions or credits that are not allowed under law. The IRS Criminal Investigations Department is the branch that is charged with investigating any potential legal violations of the tax laws. Each year, officials at this agency investigate many possible violations of the IRS code. Under law, they have many broad powers. These abilities make it possible for them examine a person’s life and business in great detail. Officials at the agencies can conduct an audit in which they examine a business or person’s tax files for possible violations. If officials believe there has been a potential criminal violation of the tax laws, they are also allowed to start a criminal investigation.

Potential Penalties

Should officials determine a problem exists, the individual can face civil consequences and criminal consequences. Civil consequences may include a seventy-five percent penalty for fraud on all additional income as well as interest on the penalty and all extra taxes. While criminal penalties have a five year limitations for prosecution, civic penalties have no statue of limitations. Should the IRS suspect someone has under reported any income by more than a quarter, they are empowered to examine six years of back tax returns. If they can prove willful and deliberate intent, they can examine all the taxpayer’s returns going back to first filing. Those who are found guilty may be facing up to five years for each charge. Additional penalties include greater fines and years behind bars.

A Tax Prosecution Lawyer

A tax prosecution lawyer is a must when facing any kind of potential tax issue. The IRS has vast resources. IRS officials can spend years pursuing a single case. The lawyer can help any client determine what they need to do to respond. For example, a client may agree to admit to tax evasion under what is known as full voluntary disclosure before they do anything else. This can be a good course of action because the person is afraid the agency may find out what they’ve done. In such cases, the IRS will typically agree not to pursue criminal charges against a client. However, any client must be aware of the rules that govern these actions. These rules are highly specific and must be followed to the exact letter. The client cannot back out after agreeing to this kind of disclosure. A consultation with a tax lawyer can help the client prepare for this kind of disclosure by making sure that they are following all necessary rules. The lawyer can also help those who are already under audit at the present time. It’s a good idea to speak to an experienced tax prosecution lawyer. The lawyer can show up at any government meeting in order to make sure their rights are protected.