Tax fraud happens when people commit tax evasion or any criminal tax crime to evade paying taxes. The penalties for tax evasion can result in substantial financial harm and even prison time. According to IRS audit lawyer in New Jersey, because tax fraud is a violation of the Internal Revenue Code, it is important that you retain a competent tax defense attorney if you are charged with this offense.
Tax fraud occurs when people engage in deliberate acts or unlawful actions intentionally and knowingly underpay their tax liabilities or neglect to report an income or other tax obligation. While the IRS can pursue criminal tax evasion charges either criminally or civilly, recent federal prosecution of individuals charged with tax fraud has been more aggressive. In some cases, victims have received jail sentences or hefty fines. In other cases, the government has merely levied more fines or filed civil fraud charges.
Tax fraud investigations often start with a customer’s written statement, which is then used as the basis for pursuing tax fraud charges. Many tax fraud investigation teams conduct thorough interviews with clients, including prospective clients, to determine the circumstances surrounding the suspected fraud. Because tax fraud is committed by many different parties – accounting firms, accountants, employees, contractors, etc. – it is sometimes difficult for tax fraud investigators to build a comprehensive case against the suspected party.
False statements frequently come into play in tax fraud cases. Under the law, making false statements on tax forms can result in criminal tax evasion or criminal fraud charges. For example, a person could falsely state that they have employed a particular hobby activities when in reality they did not. This would constitute a false statement and could subject them to imprisonment.
In some instances, federal tax fraud investigations lead federal prosecutors to information that has previously been hidden from the public. For example, one prosecutor recently pursued a case against a man who had intentionally declared bankruptcy while still working as a consultant. The client had hidden this fact from most financial and accounting firms. After discovering this information, federal tax liabilities were brought forward. The man ultimately pleaded guilty to several counts of tax evasion and falsifying tax returns. As part of his plea deal, he was sentenced to two years in federal prison.
A tax fraud attorney can help clients avoid prison sentences and other serious legal penalties that come with tax evasion or fraud. Attorneys also help clients negotiate deals with IRS agents. To get the best possible legal defense, clients should be proactive in protecting their rights. If you have been charged with criminal tax fraud charges, you should contact a tax fraud attorney as soon as possible. The lawyer will assess your case and discuss your options with you. You will likely have to enter a guilty plea before your tax attorney can discuss the recommended strategy with your criminal defense attorney.