The U.S. Tax Code is notoriously confusing and is amended every year. Many taxpayers are not entirely clear on what would exactly constitute tax fraud or evasion. Unless you are trained as an accountant or other kind of tax professional, it is highly likely that mistakes could be made on your tax return. It is not uncommon for these kind of mistakes to result in an underpayment of taxes due.
What Is Tax Fraud Or Tax Evasion?
A simple mistake or mistakes on a tax return does not automatically equate to tax fraud. If the mistakes are discovered, the result is generally that the tax paying entity must the difference in tax owed and may also be required to pay a fine.
Tax Fraud Or Evasion: What The IRS Is Looking For
Tax fraud or tax evasion is the practice of purposefully underpaying taxes owed. Either may be committed by individuals or companies. When examining tax filings for cases of fraud, IRS agents are looking to prove that there was a deliberate attempt made by the filer to under represent and subsequently underpay taxes owed to the government.
Tax fraud or evasion can take many forms. Some of the common red flags that IRS investigators are looking for are:
- Underreported Income
- Inflated Expenses
- Offshore Or Undeclared Foreign Bank Accounts
- Questionable or Excessive Deductions
- Questionable Charitable Donations
The Government Is A Serious Opponent In Tax Fraud Cases
If the IRS makes a determination of tax fraud or evasion, the resulting charges and penalties can be significant. Both are serious federal offenses that the government generally approaches with a special prosecutorial zeal. A conviction in a tax fraud or evasion case can often result in expensive fines and a potentially lengthy prison term.
Don’t Delay In Speaking With Legal Counsel
The government brings an almost unlimited amount of resources to bear in fraud investigations. If you are contending with an IRS or tax-related in investigation it is prudent to speak with legal representation as soon as possible.
All of the attorneys at DRK Lawyers are former assistant district attorneys. We use our trial experience and knowledge of the government’s tactics to help defend our clients every day in the state of Pennsylvania. If you are facing tax fraud charges or an investigation, please contact our team today. There is no charge for your initial consultation.