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Mar 31, 2018

Boston 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 of the above. In a tax audit, if the IRS suspect you have committed tax fraud, they can impose a civil tax fraud penalty. This penalty is typically equal to 75% of the tax you owe, plus interest on the penalty.

Depending on the level of fraud involved, the IRS auditor may ask a tax fraud expert to look over your case and see whether it should be sent for criminal prosecution. Typically, this specialist has experience and will seek advice of the IRS’ tax fraud lawyer for help if it appears necessary.

The penalties for tax fraud are serious. You could get up to 5 years in jail, plus fines of $500,000, plus the cost of prosecution for each tax offense. Once the criminal tax case is completed 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 cannot be discharged through bankruptcy. The civil fraud penalty is dischargeable in a Chapter 7 bankruptcy.

Tax fraud is defined as intentional wrongdoing. You have to have an intentional violation, to be accused of tax fraud. Carelessness is not tax fraud. The IRS looks for certain things when evaluating whether fraud occurred, such as: understatement of income, inadequate records, failure to file, hiding assets, dealing in cash, failure to make estimated cash payments, failure to cooperate with government, failure to make payments.

If you have any of these issues and are audited by the IRS, you may need a tax fraud attorney. Actions you take during a tax audit can transform a normal tax audit into a tax fraud case. For instance, lying or giving false answers to IRS investigators, delaying the analysis, or other activities to mislead IRS agents can indicate tax 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 common charge which can result from real mistakes in reporting tax information to the IRS. Tax offenses are a few of the most frequent white collar crimes, 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 after someone prosecute falsifies their tax report – then the IRS will heavily investigate.

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Manhattan

85 Broad Street, 30th Floor
New York, NY 10005

Phone

888-977-6335

Queens

35-37 36th St,
Astoria, NY 11106

Phone

888-977-6335

Brooklyn

195 Montague St.
14th Floor,
Brooklyn, NY 11201

Phone

888-977-6335