Last Updated on: 20th October 2023, 07:17 pm

Hiring a Lawyer for Employee Retention Tax Credit Fraud Defense

Getting accused of employee retention tax credit fraud can be scary. The penalties are steep––we’re talking big fines and even jail time. But don’t panic. With the right lawyer on your side, you can get through this. Here’s what you need to know about hiring a lawyer to defend against employee retention tax credit fraud allegations.

Do I Really Need a Lawyer?

Short answer–yes. Trying to navigate the legal system alone is risky buisness. Employee retention tax credit fraud is complicated, with lots of ins and outs. A lawyer who specializes in this area understands the complex laws and knows how to build the strongest defense. They can advise you on your options and represent you every step of the way. Don’t chance it by going solo.

How Do I Find the Right Lawyer?

Asking friends and family for recommendations is a good start. Online reviews can also point you towards lawyers with strong track records. Focus your search on attorneys who specifically focus on tax fraud defense cases. Their expertise will pay off.

Narrow down your list to 3-5 lawyers. Schedule consultations to talk about your case and get a feel for each one. Consider logistics – is their office conveniently located? Are they responsive to calls and emails? And assess their confidence and competence in defending tax fraud cases. Go with the one you feel most comfortable with.

What Will This Cost Me?

Lawyers charge in different ways:

• Flat fee – One lump sum for the entire case
• Hourly rate – Billed by the hour, which can add up
• Contingency fee – Lawyer takes a percentage (25-40%) of the final settlement or judgement

An experienced tax fraud defense lawyer will likely charge $200-$500+ per hour. Flat fees might range from $5,000-$25,000 or more. Contingency fees incentivize the lawyer to get the best possible outcome for you. Make sure you understand the fee structure upfront so there’s no surprise bills down the road.

What Can I Expect My Lawyer to Do?

Your lawyer will start by thoroughly reviewing your case and the allegations against you. They’ll explain the process ahead, your rights, and possible penalties if convicted. Strategizing your defense will be a team effort between you and your attorney.

They’ll request all evidence from the IRS and work to get charges dismissed if your case was built on insufficient proof. If it goes to trial, your lawyer will aggressively defend you in court, cross-examining witnesses and presenting evidence in your favor. They may also negotiate a favorable plea deal or sentencing terms if needed.

How Can My Lawyer Defend Against the Allegations?

There are various defenses your lawyer might use, depending on the circumstances:

• You acted in good faith – If errors were honest mistakes, not intentional fraud
• No intent to deceive – You didn’t willfully misrepresent facts to gain credits
• Statute of limitations expired – Too much time passed since alleged fraud occurred
• Unconstitutional vagueness – The tax credit law is too vague
• Entrapment – You were improperly induced by IRS to incorrectly claim credits

Your lawyer will determine the strongest defense in your unique situation. Having an aggressive advocate on your side can make all the difference.

What Are the Potential Penalties if I’m Convicted?

Penalties vary based on the circumstances, but may include:

• Repaying the credits received, plus interest and penalties
• Up to $250,000 in fines for individuals
• 5 years in prison for each count of tax fraud
• Paying the IRS’ legal fees

Your lawyer’s expertise can potentially help you avoid these severe consequences. They will fight to get charges dismissed or negotiate the least damaging outcome.

Will This Go to Trial?

Not necessarily. Your lawyer may be able to resolve your case through:

• Dismissal – Getting the charges dropped due to lack of evidence or other flaws in the case.
• Plea bargain – Pleading guilty in exchange for reduced penalties.
• Settlement – An agreement between you and the IRS to settle without trial.

Going to trial is a last resort if other options fail. Your lawyer will advise if a trial is the best course or not.

How Long Will This Process Take?

Every case is different, but expect the process to take many months at minimum. Investigations and pre-trial procedures like motions and discovery can be lengthy. If it goes to trial, that adds time too. Have patience and let your lawyer handle the timeline. Stay focused on building the strongest case possible.

Can I Get My Legal Fees Recovered?

If you win your case, you may be able to get the IRS to reimburse some of your legal fees. Your lawyer can request this after a dismissal, settlement, or favorable judgement. It’s not guaranteed, but certainly worth pursuing if possible.

Having an experienced tax fraud defense lawyer gives you the best shot at a positive outcome. Don’t go at it alone. With legal expertise in your corner, you can be well defended and get the best possible result.