Mar 30, 2018
Virginia 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 of the above. In a tax audit, if the IRS suspect you’ve committed tax fraud, they could 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 degree of fraud involved, the IRS auditor may ask a tax fraud specialist to check at your case and see if 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 serious. You could get up to 5 years in jail, plus fines of $500,000, plus the expense of prosecution for each tax offense. Once the criminal tax case is completed 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 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 have to 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 cash, failure to make estimated cash payments, failure to cooperate with government, 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. For 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 strategy.
Is Tax Fraud a crime?
Tax fraud is a common charge which could result from genuine mistakes in reporting tax information to the IRS. Tax offenses are some of the most ordinary white collar crimes, 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 to 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 have received a notice from the Internal Revenue Service (IRS) regarding tax fraud, you should consult with an attorney immediately. It’s a serious matter that should be handled by an experienced professional.
Here’s something that you should know about the IRS. This organization doesn’t criminally prosecute many people each year. When they make the decision to prosecute, tax agents have gathered pages of evidence against the defendant.
Facing an IRS criminal investigation without proper legal guidance could cost you freedom and thousands of dollars in fines. It’s best to partner with an attorney who can help you make sense of the criminal charges.
Still think you can face an IRS criminal investigation alone? Here are a few reasons that hiring an attorney is a necessity.
1. You may not know how to interact with the IRS. When the agents from the IRS go on a ‘fact-finding’ mission, they will use your statements to bolster their case against you. An experienced attorney can provide you with a blueprint that shows you how to interact with the IRS.
2. Tax laws in the United States are complex. Unless you are an attorney, you don’t have the experience to make the laws work in your favor.
3. If you are facing significant jail time, attorneys know how to negotiate a plea deal if it’s in your best interest. It can be nearly impossible for you to represent yourself in negotiations or tax court.
The IRS is serious about tax fraud cases. To significantly increase your chances of avoiding fines and a jail term, it’s in your best interest to hire an attorney.