Mar 30, 2018
Georgia Tax Fraud Lawyers
In most 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 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.
Depending on the level of fraud involved, the IRS auditor may ask a tax fraud expert to check over your case and see if it should be sent for criminal prosecution. Normally, this specialist has experience and will seek advice of the IRS’ tax fraud attorney for help if it looks necessary.
The penalties for tax fraud are severe. You could get up to five years in jail, plus fines of $500,000, plus the cost of prosecution for each tax crime. Once the criminal tax case is completed by the IRS criminal unit, it’ll be referred back to the IRS Examination Division where the taxes are assessed. The civil tax fraud penalty can be added by the IRS on top of the tax fraud penalties. It’s important to understand that tax bills 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 have to 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 authorities, failure to make payments.
For those who have one of these problems and are audited by the IRS, you might need a tax fraud lawyer. Actions you take during a tax audit can transform the usual tax audit into a tax fraud case. For example, 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 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 prosecute after someone falsifies their tax report – then the IRS will greatly investigate.
Do you need an attorney for a tax fraud case?
Have you received a notice from the IRS that you are being investigated for tax fraud? If so, it’s not the time to face the charges alone. Here’s why.
The IRS hires thousands of investigators throughout the United States. These agents can access all of your financial records and transactions.
If you are being charged with tax fraud, it means that the IRS may have enough evidence to convict you of this serious crime. For that reason, you will need to hire an experienced attorney who is not afraid to stand up to the IRS with you.
Hiring an attorney has many advantages. Here’s how an attorney can benefit your situation.
1. An experienced attorney can make the situation less frightening for you. When you fully understand the nature of the tax fraud charges, you may feel a sense of relief because your mind is not conjuring up frightful images. An attorney can provide you with the facts about your case.
2. You will know how to handle letters and phone calls from IRS investigators. If you haven’t interacted with the IRS on a personal level, it’s easy to respond in a manner that hurts your chances of acquittal. An attorney will respond to the IRS on your behalf and represent you in court.
3. Your attorney may be able to convince the IRS to withdraw the charges. This is especially true if the alleged tax fraud is due to errors on your part.
When it comes to tax fraud, you should make every effort to take actions that will keep you from having to go to jail or pay hefty fines. An experienced attorney can be your best defense.