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Mar 31, 2018

Tucson 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, 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.

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 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 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 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 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 have to have an intentional violation. Mere carelessness isn’t tax fraud. The IRS looks for certain things when assessing whether fraud occurred, for example: 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 problems and are audited by the IRS, you may need a tax fraud attorney. Actions you take during a tax audit can transform the usual tax audit into a tax fraud case. 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 frequent white collar offenses, which impacts 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 deeply explore.

Do you need an attorney for a tax fraud case?
Begin contacted by the IRS in regards to your tax-filing practices is always a serious matter, but in some cases, issues can be handled by directly contacting the proper IRS agent. In other cases, the IRS may be pursuing more consequential charges, one of the most common being tax fraud, which is a criminal matter. With issues such as tax fraud, it is important to secure legal counsel as quickly as possible, as the consequences surrounding these charges could range from a fine to a prison term. When the IRS chooses to bring up charges of tax fraud, they have usually been able to determine that a person has purposely falsified their information regarding their tax return in some significant manner. Because charges are not usually brought up without sufficient evidence, charges of tax fraud have a very high conviction rate. It is the job of the attorney to attempt to present evidence regarding the reasoning for the tax violation, and if your counsel is able to prove that the violation was due to an error or an oversight, charges could be significantly diminished, going from a prison sentence to a fine. The tax code is very complex, so oversights or other forms of negligence are often reasons that charges of tax fraud are presented. As the nature of tax fraud provides that heavy penalties may be imposed, it is important to only speak to an IRS agent when your attorney is present. Any statements made without the presence of an attorney could be detrimental to your case, and the IRS agent may be inclined to use them against you. Hiring an attorney also gives the advantage of the attorney-client privilege, which protects the client regarding any statements that he may make to his counsel, meaning that any disclosed information cannot be used against you.

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Manhattan

85 Broad Street, 30th Floor
New York, NY 10005

Phone

888-977-6335

Queens

35-37 36th St,
Astoria, NY 11106

Phone

888-977-6335

Brooklyn

195 Montague St.
14th Floor,
Brooklyn, NY 11201

Phone

888-977-6335