Mar 31, 2018
Houston 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 the above. In a tax audit, even if the IRS suspect you have committed tax fraud, they could impose a civil tax fraud penalty. This penalty is equal to 75 percent 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 check at your case and see whether it ought to be sent for criminal prosecution. Normally, this specialist has experience and will seek guidance from 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, plus the cost of prosecution for each tax offense. Once the criminal tax case is finished by the IRS criminal unit, it’ll be referred back to the IRS Examination Division where the taxes are assessed. The IRS can add the civil tax fraud penalty on top of the criminal tax fraud fines. 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 evaluating whether fraud occurred, such as: understatement of income, inadequate records, failure to file, concealing assets, dealing in money, 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 may need a tax fraud attorney. 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 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 strategy.
Is Tax Fraud a crime?
Tax fraud is a frequent charge which could result from genuine mistakes in reporting tax information to the IRS. Tax offenses are a few of the most frequent white collar offenses, which affects business professionals and average 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 heavily investigate.
Your Need For An Attorney On A Tax Fraud Case Is Real
There are many situations in life in which you may require the assistance of an attorney. One of those situations is when you are involved in a tax fraud issue. That is to say when the IRS sends you some correspondence stating that they believe you have cheated on your taxes.
This is something that happens to more people than you might think. It is not some isolated incident in which only a handful of truly evil people get caught up. No, rather it happens to plenty of people who may have done nothing more wrong than mixed up a few numbers here or there on their tax forms. That is a common enough mistake that is easy to make given how complex those forms are to begin with.
When you become the one who receives a letter from the IRS stating that it is believed that you have committed some kind of fraud, it can be incredibly intimidating. You might even get very fearful as you worry about the potential punishments that await you. One of the possible punishments is even taking away your freedom. You can in fact go to jail for not properly paying your taxes. With that lingering over your head, you probably would want to find a way to get yourself a lawyer and get this problem taken care of ahead of time.
Your lawyer will always be on your side to guide you through this thing no matter if it is thick or thin. They are going to speak up on your behalf to let the world know that you did not take these actions on purpose. They will also negotiate with the IRS to get them off your back. Finally, they will settle this thing to the best advantage that they can find for you in particular. That alone is a huge help.