Mar 31, 2018
Los Angeles 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, in addition to a late filing penalty, and charge interest on all the above. In a tax audit, 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.
Depending on the level of fraud involved, the IRS auditor may ask a tax fraud specialist to look at your case and see if it ought to be sent for criminal prosecution. Typically, this specialist has experience and will seek advice from the IRS’ tax fraud lawyer for help if it looks 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. 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 on top of the criminal tax fraud penalties. It’s important to understand that tax statements 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. Mere 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 money, failure to make estimated cash payments, failure to cooperate with government, failure to make payments.
If you have any of these problems 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 activities to mislead IRS agents can indicate tax 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 common charge which can result from real 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 afield following someone falsifies their tax report – then the IRS will heavily investigate.
Spare Yourself From Having To Fight The IRS, Hire A Lawyer
Unless you are a glutton for punishment, you probably do not like the thought of having to do combat with the IRS all by yourself. It is a difficult thing to do for sure and most people would rather avoid it. Thus, they may decide to hire an attorney to help them get over some of the hurdles that the IRS is going to throw at them.
Many times people receive a letter that tells them that they are being investigated for tax fraud. That is the moment when they probably need to start looking for a good lawyer. They need someone who can minimize their exposure to legal consequences related to any issues stemming from their taxes.
It is important to remember that the IRS not only has to the power to push penalties and fees onto the taxes you owe them. They also have the ability to put a person in jail in extreme cases. You do not want to open yourself up to that possibility at all. Instead, you need to go and find yourself an attorney who has the chops to fight for you against the claims of the IRS.
Attorneys in this area of the law are usually very well practiced as they see case after case like this appear before them all the time. They get to see how this cases play out and can fine tune their strategies over time for dealing with the IRS. It is something that all lawyers could really learn a lesson or two from.
Make sure you get the best possible attorney to work this case for you. It is going to be a blessing to have them helping out as you do not want to know what it is like to face the IRS all by yourself. Avoid that nightmare and just hire the attorney you need now.