Mar 30, 2018
Michigan 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, even if 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.
Depending on the level of fraud involved, the IRS auditor may ask a tax fraud expert to check over your case and see whether it should be sent for criminal prosecution. Typically, this specialist has expertise and will seek advice of the IRS’ tax fraud attorney 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, plus the expense of prosecution for each tax offense. Once the criminal tax case is finished by the IRS criminal unit, it will be referred back to the IRS Examination Division in which the taxes are assessed. The tax fraud penalty can be added by the IRS . 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 cash, failure to make estimated cash payments, failure to cooperate with authorities, failure to make payments.
For those who have one of these problems 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. For example, 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 could result from genuine 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 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 accounts – then the IRS will heavily investigate.
Do You Need an Attorney for a Tax Fraud Case?
Tax fraud is a taxpayer’s intentional act to circumvent paying lawfully owed taxes. It includes tax evasion and wrongfully claiming tax credits or deductions. Tax fraud can result in serious criminal and civil penalties. If you have been accused of tax fraud and find yourself under criminal investigation by the Internal Revenue Service, a competent tax attorney could be a powerful ally in your corner. As an expert in issues you are facing, a tax attorney can assist you in navigating through the complex processes of the U.S. Tax Court.
Although you could represent yourself or have other types of professionals represent you in court, a tax lawyer is an expert in the laws that pertain to your situation. Another distinct advantage of securing the services of a tax attorney is that whatever you say to her is usually confidential. This means that she is not legally required to disclose what you share in the courtroom. This is not always the case with other professionals.
When you are searching for a tax attorney, you will need to know:
- Does the tax attorney have a Juris Doctor degree, and has he been admitted to the state bar?
- Has the tax attorney received specialized training in tax law?
- Can the tax attorney help you with accounting issues if needed?
- Can the tax attorney refer you to another specialist with more expertise regarding your areas of concern?
- What is the tax attorney’s fee schedule?
Tax law is highly technical and complicated. A tax lawyer is equipped with the experience and knowledge to handle the legal aspects of your tax circumstances. If you foresee challenges regarding tax fraud, consult with a tax attorney right away to help you avoid or alleviate severe civil or criminal consequences.