Houston ● Seattle Tax Fraud Attorneys
In general, tax fraud is different from tax evasion according to the degree of intent and purpose with which a person misreports, conceals, or evades paying taxes. Tax evasion may involve claiming deductions that don't apply or not reporting income. Here, the intent is to avoid paying taxes. In cases involving tax fraud, a person or business intentionally engages in deceit in order to defraud the government. While tax evasion may rise to the level of fraud, tax fraud typically involves using a fake Social Security number, claiming dependents you don't have, using two sets of financial books, and other means for concealing assets, one's identity, and earnings. If convicted for tax fraud, the civil tax penalty is 75% of the taxes owed, plus interest.
If the IRS tax auditor believes a case involves criminal intent, he or she may refer it to the Criminal Investigation Division (CID) of the IRS. If the CID believes fraud is involved, you could be indicted on federal tax fraud charges. If tried and convicted, you face up to 5 years in prison and fines that could equal $500,000. You will also be fined for the cost of prosecuting each of the tax crimes you are charged with under your indictment.
If you're under investigation for tax fraud, it's important to retain legal representation in order to protect your rights and avoid obstruction of justice charges when cooperating with the authorities. To schedule a confidential consultation to discuss your case, contact Texas and Washington tax fraud attorneys at the Hammond Law Group today.
Facing Allegations of Tax Fraud
The Hammond Law Group advises, counsels, and represents individuals and businesses in tax fraud cases involving the following kinds of allegations:
- Underreporting income
- Falsifying earning statements
- Failure to file a tax return
- Non-disclosure of assets
- Paying vendors or employees in cash while failing to make tax payments accordingly
Why it's Important to talk to an Attorney if the IRS contacts You
The tax code can be complex and confusing. As a result, a person or business may repeat the same mistake when filing a tax return. Overzealous IRS agents can mistake a repeated error in filling out tax forms for a pattern of fraud. As a result, you may find yourself under investigation for tax fraud without realizing you had done anything wrong. If contacted early enough, our attorneys may be able to pre-empt an investigation by answering investigators' questions and clarifying what happened before charges are brought.
If, however, you purposely tried to avoid paying taxes, you may be guilty of tax evasion rather than fraud. While the penalties for evasion can be severe, they are, by and large, less serious than those in tax fraud cases. Here, the government must address the issue of your state of mind and whether you intentionally engaged in deceitful actions for the purposes of defrauding the government. In the end, you may be guilty of tax evasion but not tax fraud. As a result, depending on the specifics of your case, we may be able to convince prosecutors to reduce the charges or penalties against you.
Contact Houston ● Seattle Tax Fraud Defense Attorneys
In order to protect your rights and understand what is involved in tax fraud investigations, contact Houston and Seattle tax fraud defense lawyers at the Hammond Law Group today to schedule an appointment and learn how we can help you.
