Mar 30, 2018
West Virginia Tax Fraud Lawyers
In most tax audits the agency is only interested in collecting taxes and with penalties. The IRS can impose charge interest on all the above, and a negligence penalty, along with a late filing penalty. In a tax audit, even if 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 ought to be sent for criminal prosecution. Typically, this specialist has experience and will seek advice 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, in addition to the expense of prosecution for each tax crime. When 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 on top of the criminal tax fraud penalties. It’s important to know 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 must 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.
If you have any of these problems and are audited by the IRS, you might 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 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 real 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 afield following someone falsifies their tax accounts – then the IRS will heavily investigate.
Do you need an attorney for a tax fraud case?
If the IRS has filed tax fraud charges against you or your business, you might be wondering whether it’s worth the investment to hire an attorney. At this moment, the most important action that you can take is to hire an experienced attorney. Here’s why.
1. The IRS has the power to convict you and take your personal belongings including your home, cars and money. With so much at stake, hiring a reputable attorney is a smart move.
2. Attorneys can advocate for your rights. There are guidelines that IRS agents must follow as they are conducting investigations. An experienced attorney can ask the court to hold IRS agents accountable if they violate your rights during an investigation.
3. By hiring an attorney, you may be able to avoid imprisonment or excessive fines. A knowledgeable attorney knows how to represent a tax fraud case successfully.
4. Attorneys have access to resources that can impact the outcome of your case. They can hire expert witnesses and forensic accountants to testify on your behalf.
IRS agents are committed to prosecuting people who they believe have broken the law. As a tax fraud defendant, you deserve to have an attorney who is working hard to protect your rights throughout the entire process.