Mar 31, 2018
Fresno 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, in addition to a late filing penalty, and charge interest on all of the above. In a tax audit, if the IRS suspect you’ve 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.
Based on the degree of fraud involved, the IRS auditor may ask a tax fraud expert to look over your case and see if it should be sent for criminal prosecution. Normally, this specialist has expertise and will seek advice of the IRS’ tax fraud lawyer for help if it looks necessary.
The penalties for tax fraud are serious. You could get up to 5 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 will be referred back to the IRS Examination Division where 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 know 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 cash, 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 attorney. Actions you take during a tax audit can transform the usual tax audit into a tax fraud case. By way of example, lying or giving false answers to IRS investigators, delaying the investigation, or other actions to mislead IRS agents can indicate fraud.
Experienced tax fraud lawyers 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 genuine mistakes in reporting tax information to the IRS. Tax offenses are some of the most frequent 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 report – then the IRS will heavily investigate.
Do you need an attorney for a tax fraud case?
You will want to hire a tax attorney if the IRS is accusing you of tax fraud, evasion, or underpayment. The IRS is serious about collecting money, and the system is confusing. An experienced tax attorney understands the IRS hoops and can jump through them for you.
If the IRS thinks you have commited fraud, you should speak with a tax attorney before you talk to anyone else. Your attorney protects you, and all discussions you have will be kept private under the laws of attorney-client privilege. Attorney-client privilege means the courts can not force the attorney to disclose anything you say, email, or communicate to the attorney and the attorney’s staff.
After the IRS contacts you about fraud or any payment issues, many people call their accountant. The problem with that action is the conversations you have with the accountant are not secret. The courts can ask the accountant to testify against you, and the accountant will have to tell the courts everything you shared with them.
An attornies office that specializes in tackling the IRS knows the avenues and offices within the IRS to contact for your particular case. Tax attornies understand the verbiage that the IRS will use, and they know the deadlines the IRS has to meet, as well as the time frames you will have to be aware of.
When communicating with the different agencies in the IRS, a tax attorney will know how to state the facts. Documents written in the IRS lingo are threatening and frustrating. Give your attorney a copy of every letter the IRS sends you. These are relevant documents that an experienced attorney will know how to respond to.
To protect yourself, hire a tax attorney to settle any accusations of tax fraud. An attorney will work to resolve the issues. If the problems cannot be solved, the attorney will negotiate on your behalf.