![]() ![]() ![]() A tax crime can also be charged where an individual earning income knowingly and intentionally fails to file an income tax return or intentionally falsifies information on a tax return. The reporting of personal expenses as business expenses is a common method whereby income is evaded through overstating deductions. Tax evasion is accomplished through under-reporting income, overstating deductions or claiming credits that the taxpayer is not entitled too. Tax evasion is ordinarily accomplished through deliberate misrepresentations or concealment of the taxpayer’s true net income to the taxing authorities in order to reduce their tax liability. Tax evasion occurs where illegal actions are taken by individuals, corporations’ trusts and other entities in order to evade having to pay the true amount of income tax. The tax gap is the difference between what taxpayers actually pay on their income tax returns as opposed to what they are legally required to pay. The IRS in response to the economy has increased the number of civil audits and criminal tax investigations in an attempt to close the perceived increase in the tax gap associated with the bad economy. The IRS is well aware that in bad economic climates many individuals experience increased temptation to cheat on their income taxes. One desperate act that may have devastating consequences is tax evasion by cheating on your taxes in order to attempt to make financial ends meet. The increased financial pressure brought on by the current economy has motivated many honest people into committing desperate acts. In tough economic times such as these many people are struggling to meet their financial obligations given that they are making less in their businesses or may have incurred a job loss. Tax Evasion / Tax Shelter Defense Attorney What is Tax Evasion? What is Tax Fraud? To schedule a 10-minute call with an experienced tax lawyer to discuss your tax situation, contact the Tax Law Offices of David W. At the same time, the Tax Attorney can negotiate on your behalf to arrange an installment agreement to allow you to pay what you owe over a reasonable time frame if you are not able to full pay what you owe. However, voluntary disclosure must be approached in the proper manner, with the guidance of a Tax Fraud Defense Lawyer, to ensure the IRS accepts your version of the story. ![]() If the government has not approached you yet we often recommend that you employ a strategy called a voluntary disclosure, where, by admitting you made intentional errors in filing your returns, the IRS will forego criminal tax prosecution. When the IRS knocks at your door to make an accusation of tax fraud, a Tax Fraud Defense Attorney can help you defend yourself. A conviction for tax evasion commonly produces a sentence involving heavy fines and prison time. ![]() In other words, prosecutors can charge noncompliant taxpayers with the more serious tax crimes (i.e., tax evasion) if they can prove beyond a reasonable doubt that the defendant knew that they were committing (or helping someone else to commit) a tax fraud offense. Penalties assessed for tax fraud will primarily depend on whether the government can demonstrate that the taxpayer was willful in their deceptive action. The most severe of these actions is what has become known as tax evasion. Federal law divides tax fraud into different crimes based on the nature of the taxpayer’s fraudulent actions. Tax evasion, also called criminal tax fraud, is the illegal act of a taxpayer attempting to reduce a tax obligation by purposefully reporting false information. After all, everyone fudges their tax numbers a little bit, right? Unfortunately, the IRS doesn’t listen to the “everybody does it” defense when prosecuting tax fraud. At about that time, you as a taxpayer may have felt desperate enough to alter a few numbers and reduce that tax bill. Those who abide by the old saying, cheaters never win, probably never stared at a completed federal income tax form that showed a huge, unexpected tax bill. What to do when you Forget to File Taxes.How to Survive a High Stakes Tax Audit: A Comprehensive Guide.California and Federal Employment Tax Audits.IRS Tax Audit Guides for the Self-Employed.IRS Tax Audit Guides for Business Owners.Offshore Voluntary Disclosure Program (OVDP).Offshore Voluntary Disclosure Initiative (OVDI).International Tax Law – California Attorney for IRS International Tax Voluntary Disclosure Practice.The Ultimate COVID-19 Resource Compilation.California Voluntary Disclosure Program.California Cryptocurrency Tax Attorney and CPA. ![]()
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