Mar 30, 2018
Idaho 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, along with a late filing penalty, and charge interest on all the above. In a tax audit, 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 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 over your case and see whether it ought to be sent for criminal prosecution. Typically, 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 severe. You could get up to five years in jail, plus fines of $500,000, in addition to the cost of prosecution for each tax offense. 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 in addition to the tax fraud fines. It’s important to understand 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. 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.
If you have one of these problems and are audited by the IRS, you might need a tax fraud attorney. Actions you take during a tax audit can transform a normal tax audit into a tax fraud case. For example, lying or giving false answers to IRS investigators, delaying the investigation, or other activities 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 could 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 afield following someone falsifies their tax report – then the IRS will greatly investigate.
Why You Definitely Need An Attorney For A Tax Fraud Case
There is no question that hiring an attorney when you are dealing with a tax fraud case is just about the best move that you can make given that situation. Most people receive the simple letter from the IRS stating that it is believed that they have committed tax fraud and they just freak out. It is an understandable reaction on one level, but on the other hand it doesn’t do that person much good.
What someone who is said to have committed this type of fraud should really do is look for the best legal representation they can find to help them out with their case. Tax attorneys exist in droves, and they are there to help you when this kind of situation arises.
Your tax attorney will immediately assist you with negotiating with the IRS. They will try to work out a way by which you do not have to do battle with the IRS all on your own. They will always always have your best interests at heart. They want to get you a settlement of some kind that keeps your financial and legal liability to a minimum. The less that you have to pay or suffer, the better.
You do not know the power of the IRS until they start to come after you. Do not allow yourself to believe that you can handle this all by yourself. The unfortunate truth is that the IRS will run right over you. Hire an advocate in the form of an attorney to make sure that does not happen in your case.
If you have received a letter from the IRS regarding tax fraud then there is no time like the present to obtain an attorney. They can get to work for you right away to make things right again.