Mar 31, 2018
San Jose 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 the above. In a tax audit, even if the IRS suspect you’ve 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 specialist to look at your case and see whether it ought to be sent for criminal prosecution. Normally, this specialist has experience and will seek advice of the IRS’ tax fraud lawyer for help if it looks necessary.
The penalties for tax fraud are serious. You could get up to five years in jail, plus fines of $500,000, plus the expense of prosecution for each tax offense. When the criminal tax case is finished by the IRS criminal unit, it will be referred back to the IRS Examination Division where the taxes are assessed. The IRS may add the civil tax fraud penalty on top of the criminal tax fraud fines. 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 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, concealing assets, dealing in money, failure to make estimated cash payments, failure to cooperate with authorities, 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 the usual tax audit into a tax fraud case. By way of example, lying or giving false answers to IRS investigators, delaying the investigation, 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 can result from genuine mistakes in reporting tax information to the IRS. Tax offenses are some of the most frequent 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 to further prosecute after someone falsifies their tax report – then the IRS will heavily investigate.
Do you need an attorney for a tax fraud case?
The Internal Revenue Service (IRS) aggressively prosecutes all tax fraud cases. If you are convicted of this crime, it can have a detrimental impact on your life.
Depending on the charges, you could face a lengthy prison sentence. Another consequence is you can be fined up to $500,000.
Being charged with tax fraud isn’t something that you should take likely. For that reason, it is a good idea for you to hire an attorney to represent your case. Here are a few benefits of hiring an attorney for a tax fraud case.
1. Attorneys understand how the IRS operates. For that reason, an experienced attorney may be able to help you get a favorable outcome for your case.
2. Attorneys can provide you with the appropriate responses to provide during the investigation. Since your statements can be held against you during an investigation, a lawyer can tell you how to respond to inquiries from the IRS.
3. Attorneys can help you cooperate with the IRS in a manner that preserves your legal rights. Although you are required to provide the IRS with information, you should be cautious when you interact with them.
It’s never a good idea to face tax fraud charges without competent legal counsel representation. If you have received a notice from the IRS, you should at least consult with an attorney to determine your options.