The Facts About IRS Fraud
Activities that are defined as fraudulent tax activity include:
- Omitting or under-reporting your income
- Overstating deductions
- Filing false documentation
- Failure to file a tax return
- Evading taxes owed
- Failure to collect taxes related to employment
The IRS only defines these as general tax fraud though, so they could pursue you based on other activity that they may define as tax fraud; However, they do draw a line between tax mistakes and legitimate fraud, but an attorney can assist you in cases where the IRS may be viewing a mistake as fraudulent activity. To be clear, IRS auditors look for deliberate and/or willful misconduct, not errors with math or general carelessness. They will typically be looking for specific actions like the concealing of assets, understatements of an individual’s income and lack of co-operation with investigators.
If you do happen to be audited by the IRS, you shouldn’t immediately worry, as most cases will only have them collecting back taxes along with penalties and interest. They may form a conclusion after the audit that believes you committed tax fraud though, which an attorney can dispute. If the charges do go through though, the IRS can impose a large penalty and/or turn you over to their investigators for a full criminal investigation.
The federal government will typically go over your tax returns as well if they’re investigating you for other federal crimes. This is so they can find expenditures that possibly exceed reported income; If they find something like this, they may use it against you in court, stating that it’s evidence that you could have been generating income from illegal activity. They could also throw on a tax fraud charge along with the alleged charges against you if they find the aforementioned activity.
If you’re convicted of fraud related to the IRS, you risk a fine of up to $100,000 ($500,000 if it’s a corporation) and time in federal prison that can be up to five years. They may also charge the costs of prosecution for the alleged crime to you.
How Our Lawyers Can Help Defuse or Dismiss Situations With the IRS
If the IRS is auditing you or prosecuting charges against you, you could be facing highly inflexible laws and an experienced US prosecutor. In cases like these, our highly specialized IRS fraud lawyers in Chester County can help you achieve the best possible outcome and thoroughly research all of the options you can take to defuse a serious sentence or dismiss the charges altogether. They can also help differentiate honest mistakes and willful law-breaking activity in court, which can lead to a terrifying audit being stopped in its tracks. Our attorneys also focus on keeping your rights in mind, so they’re there to stand up for you if an investigator oversteps their legal boundaries during an audit or investigation. They’re also there to help you fully understand audits and charges related to IRS fraud, so be sure to contact our team of experienced attorneys immediately to schedule a consultation and receive the best possible outcome in your case.