Mar 31, 2018
Portland 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, 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% 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 at your case and see whether it should be sent for criminal prosecution. Typically, this specialist has experience and will seek advice 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, plus the expense of prosecution for each tax offense. Once the criminal tax case is finished by the IRS criminal unit, it’ll be referred back to the IRS Examination Division where the taxes are assessed. The IRS can add the civil tax fraud penalty on top of the criminal tax fraud fines. 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 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.
For those who have one of these issues and are audited by the IRS, you may need a tax fraud attorney. Can transform a tax audit . For example, lying or giving false answers to IRS investigators, delaying the investigation, or other activities to mislead IRS agents can indicate tax 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 genuine mistakes in reporting tax information to the IRS. Tax offenses are some of the most ordinary white collar crimes, which impacts business professionals and ordinary Americans. Underreporting income, failing to file taxes, or overstating deductions are grounds for audits. If the IRS finds cause further prosecute after someone falsifies their tax accounts – then the IRS will deeply explore.
IRS Investigating You For Tax Fraud? Time To Get A Lawyer
If you’ve been charged with tax fraud by the IRS and you are wondering if you should hire a lawyer, the answer is yes. Even if you suspect that you are going to be investigated for tax fraud in the future, seeking the advice of an experienced legal professional is highly recommended. The IRS investigates hundreds of people for tax fraud every year. Criminal investigations can stem from a neighbor, co-worker or employee who tips them off anonymously. The IRS must do a preliminary investigation of each case to check its viability. If their agents uncover anything suspicious in their primary investigation, their sole focus will be to charge you with a criminal offense. The IRS agents will issue search warrants, get financial records, start interviewing potential witnesses and will put you under surveillance.
Having solid legal representation to defend you at the start of any IRS investigation is imperative to keep you from being charged in court. The IRS will have a government-backed team on their side to win a guilty verdict against you – shouldn’t you have an expert on your side? With over 3,000 criminal prosecutions won by the IRS, your odds for a not guilty verdict are much better when you hire a lawyer who specializes in tax fraud cases.