Some legal ways of avoiding paying as much in taxes include contributing more of your income to your IRA in the form of pre-tax payments. When in trouble for straying from accepted ways of avoiding paying as much in taxes, you may be charged with a crime for tax evasion. It is advised to hire the help of a reputable tax fraud lawyer to help represent you when investigated by the IRS.
Types of Tax Evasion Schemes That Are Common
Potential tax evasion schemes may be caught by the IRS during civil audits. In other instances, the allegations of evasion might get reported by a former spouse, a partner or a disgruntled employee. It doesn’t matter how the IRS was alerted to the schemes, they will investigate thoroughly. You will need the help of a lawyer quickly when they contact you. Below are some of the more typical schemes the IRS will prosecute for:
With these tax evasion schemes, the taxpayer will establish a new trust and then turn their family house over to it. When this is done, the taxpayer can deduct their home maintenance costs. Alternately, they might try to make it look like they gave control of their business to their trust to avoid paying business taxes. Many cases involve foreign trust shams.
•”Living out of the company”
In some cases, a business owner may try to use their company’s money to pay for personal expenses such as family vacations, traveling or home renovations. Any personal expenses would be included.
•Third-party payers/Employee leasing
This is an employment scheme for tax evasion that involves a business obtaining contracts legally using another business to manage their payroll. That company is called a leasing company. They will collect the employment taxes from the hiring company, but they will fail to pay those taxes to the IRS.
This is a type of employment tax scheme. The owner of a business will collect taxes from the employees, but they do not pay those taxes to the IRS. They instead use those taxes to pay for personal expenses or to be used for operating capital.
Countering allegations such as these will take a lot of help from an experienced tax evasion lawyer. Overcoming these types of schemes will take a lot of hard work. The best tax fraud lawyer will use defense methods that can reduce evasion charges, lessen the penalties and get cases dismissed.
If you think you may be targeted by the IRS for a federal investigation, never make the mistake of talking to the agents without hiring the help of a trusting, competent tax fraud lawyer who has special experience with these types of crimes. You must do your due diligence and find a lawyer who can give you the best outcome of your case.
Most attorneys will give you a free initial consultation to see if they would be able to help. Tax lawyers are necessary to avoid the common pitfalls that exist in IRS tax scheme investigations.