Mar 30, 2018
Tennessee 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’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 degree of fraud involved, the IRS auditor may ask a tax fraud specialist to check at your case and see if it should be sent for criminal prosecution. Typically, 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 5 years in jail, plus fines of $500,000, plus the cost of prosecution for each tax crime. 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 can add the civil tax fraud penalty on top of the criminal tax fraud penalties. It’s important to understand 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 have to have an intentional violation. Mere carelessness isn’t 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 issues and are audited by the IRS, you might need a tax fraud attorney. Actions you take during a tax audit can transform a normal tax audit into a tax fraud case. For 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 can result from genuine mistakes in reporting tax information to the IRS. Tax offenses are some of the most frequent 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 prosecute after someone falsifies their tax report – then the IRS will greatly investigate.
Do you need an attorney for a tax fraud case?
If you are considering representing yourself against the IRS, you should think again. Hiring a lawyer is the smart thing to do if you are being investigated for tax fraud.
Tax fraud is one of the most common types of IRS criminal charges. Since the IRS hires agents who aggressively investigate fraud cases, they have a strong track record of convictions.
Although you may have the communication skills to respond to IRS inquiries, resist the urge to stand up to the IRS without legal guidance. Tax laws and procedures are complex. Unless you are a skilled attorney, your case may not end well.
An attorney can help your case in many ways. Here are a few ways that you can benefit from hiring an attorney.
1. An attorney has experience handling several types of tax fraud including tax evasion and underreporting of income.
2. Attorneys spend at least three years in law school learning about tax laws and how to represent clients.
3. Experienced attorneys can save time. If you attempt to represent yourself, you will spend countless hours trying to learn how to respond to each IRS inquiry.
Being charged with tax fraud can be stressful. An experienced attorney can successfully manage your case and relieve the stress that you will feel if you handle your case on your own.