Tax Fraud is a term used in a variety of different legal situations involving the Internal Revenue Code (IRC) as well as the United States Code (USC). A taxpayer could be punished for tax fraud in civil as well as criminal court. It is possible for a taxpayer to be found guilty of tax fraud and be punished with civil penalties under the USC and not be charged with criminal tax fraud.
Burden Of Proof
The government will have the burden of proof with a charge of tax fraud. This can be a challenge as the government will have to prove a taxpayer intentionally defrauded the government. Previous cases where the government did prove a taxpayer knowingly violated the Internal Revenue Code were difficult. This is the reason a charge of tax fraud is something the government prefers to pursue in civil court. It is usually for a taxpayer underpaying their taxes.
Individual Tax Fraud Investigation
Allegations of tax fraud are investigated by the Internal Revenue Service Criminal Investigation Unit. They will focus their investigation on individual taxpayers and businesses in specific situations.
Taxpayer Tax Fraud Investigation
*A taxpayer intentionally did not file their income tax return.
*A taxpayer purposely did not pay the tax debt they owed the government.
*A taxpayer misrepresented the true state of their individual situation. They intentionally falsely claimed tax credits as well as deductions and more.
*A taxpayer purposely filed a false tax return.
*A taxpayer intentionally did not report all their income.
Business Tax Fraud Investigation
*Intentionally failing to file payroll tax reports
*Intentionally failing to report and pay all withheld payroll taxes
*Intentionally failing to withhold FICA (Federal Insurance Contributions Act) taxes as well as federal income tax from the paychecks given to employees
*Intentionally failing to report some or all cash payments given to employees.
*Intentionally hiring an outside payroll service which fails to pay any and all funds owed to the IRS.
Sources for Investigations
Investigations conducted by IRS Special Agents are often started after they receive information from an IRS revenue agent or revenue officer. Information is often received from the public. During the course of investigations sources of others involved in tax fraud will be revealed. It is also possible for law enforcement agencies to provide the IRS with information on possible incidents of tax fraud and more
Prosecution Recommendation
During a criminal investigation, IRS special agents will work closely with the IRS Chief Counsel Criminal Tax Attorney. All necessary evidence is obtained and then analyzed. An IRS special agent or supervisor will decide if the evidence gathered indicates the subject engaged in criminal activity. Should the evidence indicate criminal activity, the IRS special agent will proceed with creating a report detailing the possible violations of the law.
Legal Defenses
Anyone who finds themselves in a civil or criminal court for tax fraud will need to speak with a legal professional as soon as possible. There are certain effective legal defenses that can be used.
*Mistake – It is possible to prove a taxpayer or business made an honest mistake when paying taxes due or reporting what has been earned.
*Insufficient Evidence – It is possible the government does not have enough documentation to prove their case against a taxpayer or business.
*Entrapment – This happens when the government is able to compel an innocent taxpayer or business to commit a crime. One that would not have been committed without governmental influence.
*Statute Of Limitations – There is a statute of limitations the government has when it comes to filing charges against a taxpayer or business. Once this time has passed, the government can no longer file charges.
Insanity – A taxpayer or business may claim they were insane at the time the offense occurred. Most legal professionals realize this is difficult to prove in any court.
When a person or business is accused of tax fraud, they will need to immediately speak with an attorney. These legal professionals know how to properly analyze a case. They know how to handle the situation for the best possible result.
Magisterial District Court
If you have been accused of committing a crime, such as shoplifting or perhaps a driving offense, you need an experienced and knowledgeable attorney that will work on your behalf. When you have received a summons for an alleged crime, it’s imperative that you seek legal counsel.
If a court date has been scheduled for you or a member of your family and the location is the Montgomery County Magisterial District Court, it would be normal to feel worried about the situation. You can minimize your concern by having a qualified attorney that can answer any of your questions. You need someone with experience to provide guidance.
If you have received a formal notice to appear in Montgomery County Magisterial District Court 38-1-03 located in Jenkintown, your case will be heard before Christopher J. Cerski, a Magisterial District Judge. The same applies if you receive a summons for a variety of other reasons, such as a preliminary hearing, traffic citation, non-jury trial, preliminary arraignment, or a bench warrant for this location.
It’s important to note that there are two different Magisterial District Courts located in Jenkintown, so it’s imperative that you verify the location. You can confirm the location by reviewing the documents that requested your appearance in court. It’s also noteworthy that Cheltenham Township Voting Districts are covered in the Magisterial District Court, which includes 1-1 through 1-4, 2-1 through 2-4, 3-1 through 3-4 and 4-1 through 4-4.
As a minor court, the Magisterial District Court in Jenkintown decides on citations that are related to traffic, as well as those that are not traffic related. Matters concerning preliminary hearings and preliminary arraignments for landlord/tenant disputes, criminal cases and civil cases that do not exceed $12,000 are all handled by the Montgomery County Magisterial District Courts.
Magisterial District Courts – Montgomery County, Pennsylvania
Offenses in Pennsylvania that are considered less serious are handled by Montgomery County Magisterial District Courts. The nature of these offenses vary and include harassment, criminal mischief, underage drinking, disorderly conduct, first offense shoplifting (less than $150), and driving with a suspended license. Magisterial judges in Pennsylvania also perform marriages and administer oaths.
Montgomery County has 30 Magisterial District Courts where criminal cases begin. Misdemeanor and felony cases start with preliminary arraignments and preliminary hearings. Subsequent to the initial phase for a misdemeanor or felony case is the Montgomery County Court of Common Pleas.
Benefits of Having Experienced Legal Representation
When charged in Montgomery Country with either a traffic or a criminal offense, the benefits of having a lawyer are extensive. Chief among them is that a lawyer can develop an appropriate defense based on the situation. In the event that you or a family member are dealing with an allegation of a minor offense, there is still a chance of troubling consequences, even though it’s minor. Possible outcomes are a fine of $300 and jail time of up 90 days. There are other factors to consider. For instance, individuals with a prior conviction can face jail time of up to 180 days.
When you are unfamiliar with legal processes, it’s easy to make mistakes and even plead guilty to an alleged offense when it is not in your best interest. In fact, the outcome of a case when handled without representation can be drastically different and with much harsher results. Working with an attorney is the best way to prevent these types of situations from disrupting your life.
You need representation that understands the legal system, including the Pennsylvania Magisterial District Court. Sometimes there are legal errors that result in unfair outcomes. With the right guidance, there is a greater chance of having the charges reduced or dismissed. The Law Offices of Amato Sanita has extensive experience handling cases in Pennsylvania’s Magisterial Courts. Clients trust the quality service and strong defense provided by the firm.
Montgomery County Tax Evasion Lawyers
Being investigated for tax evasion is a serious matter. If you’re under investigation by the IRS for tax evasion, it’s time to consult with a Montgomery County tax evasion lawyer.
Our experienced Montgomery County tax evasion lawyers have defended hundreds of clients in tax evasion investigations. We want you to know that we are ready to consult with you to determine how we can help you.
Examples of tax evasion
IRS officers investigate individuals (and companies) for tax evasion when it is believed that they had a willful intention to avoid paying federal taxes. There are several actions that constitute this crime.
1. Omitting or underreporting income. The IRS has strict rules when it comes to reporting income. According to the United States tax guidelines, you must report all of your income on your tax return. If you deliberately omit or underreport your income for any reason, you could be investigated for tax evasion.
2. Keeping false records for tax-filing purposes. As a business owner, it’s essential that you keep accurate records of your business transactions for tax purposes. A common tax evasion practice is for companies to maintain two sets of accounting records. One of the records is accurate. While the other record contains documentation to support an inaccurate tax return. The amount of income that’s reported on your company’s financial statements and your tax forms must be the same.
3. Claiming deductions that aren’t applicable to you or your business. While it’s true that you should take advantage of tax deductions, it’s illegal for you to use deductions that you aren’t qualified to receive. This includes deductions for charitable contributions, childcare, business expenses and travel.
4. Using personal expenses to claim as business expenses. IRS regulations are clear when it comes to drawing the line between personal and business expenses. It’s an unlawful practice that the organization doesn’t tolerate. If you have property that you use for business purposes, it’s important to maintain accurate records in case of an audit.
5. Transferring and hiding assets. This includes hiding money in foreign bank accounts or allocating money to a relative who earns less money.
How to handle a tax evasion investigation
During the past two decades, the IRS has lost about $3.4 trillion in revenue from tax evasion. The investigators at the IRS work diligently to recover money that is due to the federal government.
If you’re facing a tax evasion investigation by the IRS, you must cooperate with the investigators. However, you shouldn’t face the IRS alone.
There are over 74,000 pages of information in the federal tax code. This can make it challenging for you to represent yourself. An experienced Montgomery County tax evasion lawyer can be your greatest defense against tax evasion allegations.
Since tax evasion investigators must be able to prove that you voluntarily committed tax evasion, there are several ways our Montgomery County tax evasion lawyers can defend you against from the following consequences of tax evasion – monetary penalties, prosecutions, criminal charges and restitution.
Common tax evasion defenses include:
1. You made an error on your tax return that wasn’t done to intentionally defraud the government.
2. The IRS has insufficient evidence to prove that you willfully committed tax evasion.
3. The statute of limitations on your investigation has expired.
4. Tax evasion was committed due to entrapment.
Consult with a Montgomery County tax evasion lawyer
When you speak with one of our Montgomery County tax evasion lawyers, we’ll determine the course of action to take to defend you against tax evasion. Whether your case is simple or complex, our tax evasion attorneys can assist you. If you would like to meet with one of our Montgomery County tax evasion lawyers, contact us.
