Mar 31, 2018
San Francisco 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 may 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. Mere carelessness isn’t 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 authorities, 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 afield following someone falsifies their tax report – then the IRS will greatly investigate.
Do you need an attorney for a tax fraud case?
Attorney-client privilege is one advantage to hiring an attorney who specializes in dealing with the IRS and tax fraud. If the IRS believes some level of fraud has been committed, they must investigate it thoroughly. A tax attorney knows the rules the IRS must follow.
Communication between you and your accountant are not privileged. This means the courts can force your CPA to answer any questions about the tax returns, and the CPA must answer them or risk losing the ability to practice, be fined, or possible jail time.
A tax attorney will dispute the fraud charges on your behalf. Also, they can tackle any taxes owed and work on reducing or settling them. Have an attorney go through the fees and fines with you.
Attorneys who have experience working with IRS know which department to address, and they may have contacts in the system. The IRS, like many US government agencies, is a maze. You will want to make sure you are taking the best actions for your circumstances in the right order.
Timing is critical when dealing with claims of tax fraud. If you have already put off contacting a lawyer, you urgently need to get to one. The attorney could quickly get in touch with the IRS and begin the process of clearing up and resolving your case. The situation takes time to work through but waiting will lead to even worse problems. The IRS can not stop pursuing you.
Tax attorneys are the best defense when it comes to disputing the IRS, and they have the education and background in accounting and taxes to work in the complicated IRS system. Their experience will definitely save you stress, time, and probably money.