Mar 30, 2018
Nebraska 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, in addition to a late filing penalty, and charge interest on all of the above. In a tax audit, if 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.
Depending on the level of fraud involved, the IRS auditor may ask a tax fraud specialist to look over your case and see if it should be sent for criminal prosecution. Typically, this specialist has experience and will seek guidance of 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, in addition to the cost of prosecution for each tax crime. 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 IRS can add the civil tax fraud penalty in addition to the criminal tax fraud penalties. It’s important to know 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 must have an intentional violation. Mere carelessness is not tax fraud. The IRS looks for certain things when evaluating 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 government, failure to make payments.
If you 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 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 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 a few of the most frequent white collar crimes, which impacts business professionals and average Americans. Underreporting income, failing to file taxes, or overstating deductions are grounds for audits. If the IRS finds cause to further afield following someone falsifies their tax report – then the IRS will heavily investigate.
Do you need an attorney for a tax fraud case?
The United States tax code contains approximately 2,652 pages of complex tax laws. It’s difficult for the average person to interpret IRS laws.
If you are facing criminal charges due to tax fraud, it’s important for you hire a tax attorney to represent your case. An experienced tax fraud attorney understands the interpretation of these laws and how they can affect you.
There are several benefits of partnering with experienced legal counsel to represent you during criminal proceedings. Here are a few advantages of hiring an attorney.
1. Serious tax fraud charges can potentially land you in jail. A good defense attorney can win your case or convince IRS to drop the charges against you.
2. The IRS hires attorneys to represent their interests. Since you will be facing strong IRS attorneys, you need to hire an attorney who can level the playing field.
3. The IRS is one of the most powerful government agencies in the United States. Not only can they incarcerate you, they have the power to seize your property and levy your accounts. You need experienced protection against this powerful organization.
4. Experienced attorneys understand the IRS investigation process. They can help you handle IRS investigators through each step of the process.
It’s important to get legal representation before you take on an IRS tax fraud investigation. By hiring an attorney, you may be able to avoid criminal prosecution.