Mar 30, 2018
Texas 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, 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 degree of fraud involved, the IRS auditor may ask a tax fraud expert to check at your case and see if 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 appears 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 expense of prosecution for each tax offense. 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 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 have to 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 money, failure to make estimated cash payments, failure to cooperate with authorities, failure to make payments.
For those who have any of these issues and are audited by the IRS, you might 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 activities to mislead IRS agents can indicate tax 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 frequent 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 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 to afield following someone falsifies their tax report – then the IRS will heavily investigate.
Do you need an attorney for a tax fraud case?
Criminal charges should be taken seriously. This is especially true when you are being investigated for possible tax fraud charges.
If the IRS is investigating you for tax fraud, you should hire an attorney quickly. One of the worse things that you can do is to attempt to represent yourself. Here’s why.
1. The consequences of a tax fraud conviction can be severe. Not only will you be labeled as a convicted felon, you could go to jail and get fined as much as $500,000.
2. You don’t know enough about tax laws and IRS procedures to successfully represent yourself in court.Experienced attorneys know how to use the procedures to their client’s advantage. By partnering with legal counsel, you can benefit from your attorney’s expertise.
3. Experienced attorneys have eloquent communication skills. Handling tax fraud charges requires a great deal of communication with the IRS. A good attorney is able to remain calm under pressure and convey your intentions clearly.
4. You can’t learn how to defend yourself against the IRS by consulting do-it-yourself law books. Tax fraud representation is something that should be left to licensed attorneys.
You should respond to any communication attempts from the IRS as quickly as possible. The correspondence shouldn’t be ignored or taken lightly. Consult an experienced attorney to learn about your options if you are facing tax fraud charges.