I've been accused of tax fraud. What can I do?

Income tax fraud is a serious charge. It occurs when the Internal Revenue Service (IRS) believes an individual, corporation or business to be guilty of any of the following:

• Not filing an income tax return
• Making false deduction claims
• Hiding or transferring either income or assets
• Intentionally altering the income
• Fail to pay the correct amount of excise taxes, income and employment taxes owed
• Over reporting the quantity of all deductions and/or exemptions
• Having in operation 2 different sets of books for the business
• Filing personal expense as business expenses
• Concealing amounts of wages earned or paid out

If you think you are under investigation and/or are facing accusations of tax fraud, consider hiring an income tax attorney. This may help you avoid the serious consequences of tax fraud.

Consequences Of Tax Fraud

The penalties for defrauding the federal government can be severe. The IRS may simply impose fines and monetary penalties. If the Investigation Criminal Division (CI) of the IRS becomes involved, the penalties will increase in measure. The IRS may determine it was an accidental error. A charge of negligence will result in:

• No jail time
• 20% punishment as part of your tax bill

If you are found guilty of fraud, the following will occur

• Jail sentence
• 75 % penalty on your tax bill

Hire an Income Tax Attorney

One of the only ways to avoid an actual charge by the may be to talk to an income tax attorney. He or she can explain the problem. An experienced income tax attorney may be able to help you face the accusation and  avoid any long term serious consequences.