Mar 30, 2018
Indiana 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 in case the IRS suspect you have 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. Normally, this specialist has expertise 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 expense of prosecution for each tax offense. When the criminal tax case is finished by the IRS criminal unit, it’ll be referred back to the IRS Examination Division in which the taxes are assessed. The IRS can add the civil tax fraud penalty in addition to the criminal tax fraud penalties. 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 isn’t tax fraud. The IRS looks for certain things when assessing whether fraud occurred, for example: understatement of income, inadequate records, failure to file, hiding assets, dealing in money, failure to make estimated cash payments, failure to cooperate with government, failure to make payments.
For those who have one of these issues and are audited by the IRS, you may need a tax fraud lawyer. Actions you take during a tax audit can transform the usual tax audit into a tax fraud case. By way of instance, lying or giving false answers to IRS investigators, delaying the analysis, or other activities to mislead IRS agents can indicate fraud.
Experienced tax fraud attorneys can help you navigate an IRS tax audit, and help you formulate a plan.
Is Tax Fraud a crime?
Tax fraud is a frequent charge which could result from real mistakes in reporting tax information to the IRS. Tax offenses are a few of the most ordinary 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 afield following someone falsifies their tax accounts – then the IRS will deeply explore.
Do you need an attorney for a tax fraud case?
Creating a fraudulent tax return is a serious offense the IRS must take action on. Often the return filed is incorrect, and a professional tax attorney can help you deal with the IRS.
It is to your advantage not to speak to anyone at the IRS about the accusations or return. You should have an attorney present or have your attorney represent you. The IRS personnel are there to support the IRS, not help you. The staff member will probably be friendly and helpful, but still, it is not in your best interest.
Give copies of any communications you receive from the IRS to the attorney’s office. Keep a copy for yourself. The attorney will know which letters to respond to and the best verbiage to use in the correspondence. A tax attorney has seen, read, and prepared many documents that pass between the IRS and citizens. The firms know where to mail them and what they should state.
The experience and knowledge the attorney has in the operations of the tax system will be invaluable. There are the ever-changing tax codes to keep up with, and new laws that affect taxes too.
You and your attorney have attorney-client privileges. This allows both of you to speak openly and freely. Your accountant is not protected by that privilege, so the CPA may be forced to share those conversations with the courts.
A tax attorney also can work with prosecutors if you end up going to trial. Your attorney will gather evidence and defend you. This is the reason you want to contact a tax lawyer first, not your CPA.