Tax fraud cases are mentioned on the news frequently. Many people wonder if the person did it on purpose or just didn’t realize what was going on with their finances. Sometimes tax fraud is done by a spouse without the other realizing. But, both parties are usually held responsible. If you don’t know about tax fraud, continue reading below to find out more information.
The Definition of Tax Fraud
Generally, tax fraud involves falsifying tax returns to avoid paying taxes. Businesses or individuals who participate in tax fraud usually get caught by the IRS eventually.
Is tax evasion a crime?
Yes. Tax evasion is a crime in most developed countries including the United States.
What happens if I get caught?
If you purposely file a fraudulent return you can receive fines up to $250,000 as an individual. If you have a business that filed fraudulent tax returns the corporation can receive a $500,000 fine. In both cases, if you are prosecuted, you can spend up to three years in jail or longer.
Is there a statute of limitations for tax evasion?
Yes. The IRS is only allowed to audit your tax returns for the past three years for criminal court cases. However, if a civil tax fraud case is opened against you the IRS can retrieve records for as far back as they wish.
Can the IRS levy bank accounts?
Yes. The IRS has the power to seize your property, bank accounts and garnish your wages to satisfy a tax debt.
What happens if I forgot to file tax returns?
If you have not filed your return you should do so immediately. If you haven’t filed for many years, the IRS generally requires you to file for the past six years.
What to do if you owe taxes
If you owe taxes you need to pay them as soon as possible. The IRS understands some people can’t pay the total owed in full. For this reason, they offer short-term extensions and monthly payment plans to help make the process more affordable. If you set up a payment plan make sure you pay on-time and use the IRS direct pay option on the website.
If the IRS is accusing you of tax fraud or tax evasion you need to contact an attorney immediately for further assistance. Make the call today to set up an appointment.
Roy J. Kahn, with years of legal experience in a wide variety of criminal law, heads a “boutique” firm, which means that your attorney is Roy J.Kahn, not a paralegal. If you have been charged or are about to be charged with a crime—or if you have been contacted to be a witness in a federal grand jury case, you need a qualified defense. You should consult with an attorney immediately and know that you have a right to make no statement until you have consulted with an attorney To contact Mr. Kahn, he can be reached at 305-358-7400.
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