At Breeding Carter, an experienced tax fraud or tax evasion attorney can help you avoid criminal prosecution
In most tax audits the IRS only wants to collect the taxes owed, plus interest and penalties. However, if the tax audit believes that you have committed tax fraud or tax evasion, the IRS may ask that your case be reviewed and sent to the IRS Criminal Investigation unit for federal criminal prosecution.
What Is A Tax Offense And What Are The Penalties?
Tax crimes include filing a false tax return, tax evasion, filing false documents, failure to collect employment taxes, failure to pay taxes and failing to file a tax return. Federal tax crimes are considered felonies and the penalties for criminal tax offenses are very serious. Penalties can range up to five years in prison, fines of up to $500,000, and the costs of prosecution for each separate tax crime.
What Does The IRS Look For?
Tax fraud and tax evasion require an intentional act. The government must prove that your actions were knowing. Mere carelessness is not tax fraud or tax evasion. Some signs the IRS looks for when determining whether someone has committed a tax offense are:
- Understatements of income
- Inadequate records
- Failure to file tax returns
- Implausible or inconsistent explanations of behavior
- Concealment of assets
- Failure to cooperate with tax authorities
- Engaging in illegal activities
- Attempting to conceal illegal activities
- Dealing in cash
- Failure to make estimated tax payments
If you engaged in any of these activities or suspect that the IRS believes you have engaged in any of these activities, you should speak to a federal criminal tax attorney immediately. Actions you take during the course of a tax audit can determine whether or not you are charged with a federal tax offense. Lying or giving evasive answers to IRS investigators, delay tactics and other actions designed to mislead IRS agents can lead to a federal criminal charge.
At Breeding Carter, an experienced tax fraud or tax evasion attorney can help you avoid criminal prosecution and help formulate an effective strategy to ensure that you are treated fairly.