Tax fraud is a broad phrase for allegedly dishonest tax conduct. Criminal tax evasion and filing a false return are distinct offenses, and a mistake or inability to pay does not automatically establish willfulness. The IRS Criminal Investigation division investigates possible criminal violations, while many tax disputes are handled through civil procedures.
What if a spouse prepared the return?
A joint return can create joint tax liability, but a spouse is not automatically guilty of a crime because the other spouse acted improperly. The IRS provides innocent spouse relief in qualifying civil tax situations. The applicable facts, knowledge, signatures, and available relief should be reviewed individually.
Deadlines and consequences
The old claim that criminal cases can examine only three years of returns is incorrect. Assessment and criminal prosecution have different limitation rules and exceptions. The IRS explains assessment periods, while 26 U.S.C. § 6531 addresses time limits for federal tax prosecutions. Do not rely on a general three-year rule to decide what records to keep or whether to respond. Penalties vary by statute and count; the former fixed figures in this article were misleading.
What to do
Preserve returns, source records, correspondence, and notices. Read deadlines carefully. If the IRS contacts you about possible criminal conduct, consult tax and criminal defense counsel before an interview. Payment plans and amended returns may be relevant in some situations, but they do not by themselves resolve a criminal allegation. Roy J. Kahn, P.A. handles tax crime defense matters in Miami. No result is guaranteed. This is general information, not legal advice.
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