Tax crimes can carry a sentence of up to five years in jail and fines of up to $500,000, in addition to the cost incurred for the prosecution for each crime. The IRS starts an audit with a view of collecting taxes owed along with interest and penalties. However, if tax fraud is unearthed, then civil tax penalties of up to 75 percent of the tax owed can be applied. This gets topped off with interest on the penalty. The key as to when it becomes a tax crime is to differentiate between oversights or wrong advice and willful tax evasion.
Would you like to learn more about receiving representation for a tax crime charge that you are facing? Our taxation lawyers are here to help you during your crisis. Contact a taxation law attorney in your area as soon as possible for more information about tax crimes.
The willful part comes into play if any of the following is applicable:
The first four aspects are mostly about outright non-compliance, negligence and fraud. But any ordinary citizen or business dutifully filing returns may still get entangled in the last two points. One wrong answer during an audit or an attempt to cover up a small error or oversight may be seen as a tax crime.
If you believe you have not committed a tax crime and are simply the victim of an honest mistake or wrong advice, there are many ways to discharge tax debts promptly. The appeals process is one avenue, and you can ask for interest and penalty abatements. If you realize after an audit that you do indeed owe unpaid taxes, you can ask for an installment plan agreement or an offer in compromise.
Do you have additional legal questions regarding a tax crime? Our taxation law attorneys are here to help. Contact a taxation lawyer near you today to get the answers and information that you are seeking regarding tax crimes.
Did you know?
Tax debts can be discharged through bankruptcy.
Filing for Chapter 7 and/or Chapter 13 bankruptcy is one way to discharge your tax debt.