Tax Fraud Charges, Prosecution, and Penalties

Tax fraud is the act of purposely misrepresenting your income or assets on your tax return in an effort to avoid or reduce the amount of taxes you owe. Here in the United States, tax fraud charges should be taken very seriously-they can result in substantial civil penalties or jail time.

The following actions can be considered tax fraud:

• Claiming false or exaggerated deductions on your tax return
• Knowingly hiding income or assets
• Knowingly reporting a lower income than you received
• Claiming personal expenses as business expenses

If you have committed any of the above, you may be in serious legal trouble and need help from skilled attorneys. The penalties can result in a maximum five-year prison sentence and fines of up to $100,000.

The prosecution process

Generally, there are four ways the IRS will contact you if they suspect you of tax fraud or evasion. The manner in which you are contacted should give you an idea of the severity of your suspected crime and the seriousness of their investigation.

• First, the IRS Service Center may send you a non-threatening written notice informing you of a discrepancy in your taxes.
• Second, you may receive a letter or phone call from a Taxpayer Service Representative giving you a deadline for re-filing your taxes.
• Third, a Revenue Agent or Officer may call you or visit you in your home, giving a deadline for filing the returns and perhaps offering to assist you in preparing the returns. If you refuse to file your taxes at this point, the IRS can file a return for you, which may not be as favorable as it would be otherwise.
• Fourth, an agent of the IRS Criminal Investigation Division may pay you a visit, informing you that you are now a target of a criminal investigation

If you have been informed of a pending case against you, you should immediately retain an attorney. Unlike a CPA, a tax attorney is protected by attorney-client privilege, and is consequently better positioned to offer you candid and prudent legal advice.

Tax fraud is a serious crime and can carry substantial financial penalties and quite possibly jail time. If you have been accused of tax fraud, do not gamble with your freedom and livelihood. Contact the experienced tax lawyers in Milwaukee today.