Mar 30, 2018
Utah Tax Fraud Lawyers
In many tax audits done by the IRS, the agency is only interested in collecting taxes owed, interest, and collecting 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 suspects 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 can 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, for example: understatement of income, inadequate records, failure to file, hiding assets, dealing in money, failure to make estimated cash payments, failure to cooperate with government, 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 genuine 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 further afield following someone falsifies their tax accounts – then the IRS will deeply explore.
You Need an Attorney in a Tax Fraud Case
Dealing with any legal issue can be scary. So what do you do when you have a tax fraud case pending against you? Seek out legal advice immediately! Seeking legal counsel is the single most important decision you can make. Don’t think that you can handle this on your own.
Any IRS tax fraud case is very serious in nature and your response is critical. Making any type of mistake can cost you anything from loss of time and money to even potentially your own freedom. The IRS has a whole team of attorneys on their side. You need all the legal help you can get.
When dealing with an issue such as tax fraud, the laws can be confusing. Tax laws can be very complex and you need an experienced attorney to help you navigate them.
There are many reasons to consider a tax attorney. Most people believe that they only need a certified public accountant. But retaining legal counsel is beneficial especially in the case of tax fraud. For example, having an attorney on your side but save you from testifying in court. Client-attorney privilege will prevent him from taking the stand against you as well. That privilege is not granted to a CPA.
An attorney will also help you negotiate any tax settlement on your behalf. The tax laws and codes change on a yearly basis. Only a specialized tax attorney can help you resolve any issues with the IRS.
The most important part is to protect yourself and assets. Don’t believe that any issue can be resolved on your own. Make sure to find an attorney with the experience to help fight your tax fraud case. This is an important charge, make sure you get only the best legal advice.