Mar 30, 2018
Hawaii 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 charge interest on all the above, and a negligence penalty, in addition to a late filing penalty. In a tax audit, even in case 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 degree of fraud involved, the IRS auditor may ask a tax fraud specialist to check over your case and see if it should be sent for criminal prosecution. Normally, this specialist has experience and will seek guidance of the IRS’ tax fraud attorney for help if it appears necessary.
The penalties for tax fraud are serious. You could get up to five years in jail, plus fines of $500,000, plus the cost of prosecution for each tax crime. When the criminal tax case is finished by the IRS criminal unit, it will be referred back to the IRS Examination Division in which the taxes are assessed. The tax fraud penalty can be added by the IRS . It’s important to understand that tax bills 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. To be accused of tax fraud, you have to have an intentional violation. Carelessness is not 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 any of these issues and are audited by the IRS, you might need a tax fraud lawyer. Actions you take during a tax audit can transform a normal tax audit into a tax fraud case. By way of instance, lying or giving false answers to IRS investigators, delaying the analysis, 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 strategy.
Is Tax Fraud a crime?
Tax fraud is a frequent charge which can result from real mistakes in reporting tax information to the IRS. Tax offenses are some 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 further prosecute after someone falsifies their tax report – then the IRS will greatly investigate.
Do You Need an Attorney for A Tax Fraud Case?
Although you can try and negotiate a settlement with the IRS, it is best to hire a tax attorney if you are under investigation for fraud. An attorney understands how to deal with the IRS, and in most cases understands all the intricacies of legal precedents and the tax law. If you are in serious trouble with the IRS and possibly facing criminal charges, you need the services of an attorney. Keep in mind that roughly eight out of 10 people who are found guilty of tax fraud wind up serving prison time.
If you do hire an attorney for to handle your dealings with the IRS, that attorney will act as your advocate. The attorney will work to find an immediate resolution to your case and can save you valuable time by quickly closing matters on your behalf. Hiring an attorney also gives you the benefit of attorney-client privilege, which allows you to speak truthfully about your tax fraud case without the fear of someone sharing your private information.
Although the laws of the land do not require you to hire an attorney in any civil or criminal matter, it is always best to consult with an attorney before you attempt to handle your case alone. Remember that the IRS has unlimited resources at its disposal, so you need a tax attorney with years of experience who can give you expert guidance.