Tax Fraud

Federal Defense Lawyers Explain Tax Fraud Offenses

Individuals, businesses, and tax preparers can all be charged with crimes related to tax fraud as a result of intentionally providing misinformation to the IRS. It is also possible to face tax fraud charges for a failure to disclose required information to the Internal Revenue Service, such as information about undeclared offshore accounts or about income that was earned.

The IRS has an investigative division aimed at catching alleged criminals who fail to follow all of the rules of the Internal Revenue Code.

If you come under investigation, are facing a civil lawsuit, or have been accused of violating the rules and committing fraud when it comes to your state or federal taxes, you need to be proactive about getting legal help.

Federal criminal defense lawyers at LV Criminal Defense can provide the support and advocacy that you need to respond to tax fraud charges if you live in California, Arizona, Oregon, Nevada, Utah, or surrounding areas.

To find out more about how our firm can represent your interests when you have been accused of tax fraud, give us a call today.

Types of Tax Fraud

The IRS identifies many different types of tax fraud crimes including:

• Evasion of assessment
• Evasion of payment
• Willful refusal to collect taxes
• Willful refusal to pay over collected taxes to the IRS
• Failure to file, failure to supply information, or failure to pay taxes
• Fraudulently claiming a withholding exemption
• Submitting fraudulent statements to the IRS or making false statements on any tax forms filed under penalty of perjury
• Aiding or assisting in the preparation of a false or fraudulent document
• Filing a fraudulent tax return
• Attempting to interfere with the administration of laws found in the Internal Revenue Code
• Aiding and abetting tax law violations
• Conspiring to defraud the government with respect to claims made on tax forms
• Filing false, fictitious or fraudulent claims on tax forms
• Identity theft in connection with tax returns
• Tax evasion

Each specific offense has its own definition under federal law and there are specific elements of the offense that prosecutors must prove in order for a defendant to be convicted of an offense.

For example, evasion of assessment involves the willful attempt to defeat a tax from being assessed.

This could include transferring assets in order to prevent the IRS from determining the true amount of taxes that are owed, or keeping money in secret offshore accounts that are not reported to the IRS. Filing tax returns that omit income or claim deductions that are not actually due can be considered evasion of assessment because it prevents the IRS from determining a taxpayer’s actual tax liability.

Evasion of payment, on the other hand, occurs when a taxpayer attempts to avoid paying a tax that is due. It involves a willful failure to pay taxes and, in most cases, it also involves willfully concealing money or assets that taxes could be paid from. It is not necessary for the IRS to have formally determined the amount of taxes that are due and it is not necessary for the IRS to have demanded payment in order for a defendant to be charged with a tax fraud crime for evasion of payment.

Because there are different types of tax crimes you could be charged with, it is important to understand the specific nature of the offense you are accused of. A federal criminal tax lawyer can provide assistance in helping you to understand the elements of the crime you’ve been charged with.

Penalties for Tax Fraud

Defendants who are charged with criminal tax fraud can face a number of serious penalties including:

• Jail time
• Probation
• Fines and financial penalties
• Tax liens

Those who are accused of tax fraud may face not only criminal charges, but could also be subject to civil actions as well. The IRS relies heavily on civil enforcement and there is a strong possibility that a claim could be pursued against you to recover unpaid taxes even if you are not charged with a crime.

Although criminal proceedings are much more serious because of the potential for jail time, being successfully sued by the IRS in a civil suit can still have very profound consequences.

You could face very substantial financial loss if the IRS is able to make a claim against you. In fact, in some cases, those who have faced civil penalties have ended up owing the IRS much more than the value of hidden offshore accounts or other concealed assets they did not pay taxes on.

Civil lawsuits can be difficult for defendants to respond to because the standard of proof is lower in these types of cases. While a prosecutor in a criminal case must prove every element of a tax crime beyond a reasonable doubt, you can find liable in a civil case if it is proved by a preponderance of the evidence that you aren’t in compliance with the law. This means if it’s shown that more likely than not you failed to follow the rules on tax compliance, you could end up being found liable and owing thousands or even millions of dollars in unpaid taxes and penalties.

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