The Internal Revenue Service (IRS) defines tax fraud as a taxpayer’s intentional wrongdoing with the specific purpose of evading a tax known or believed to be owing. The taxpayer both must owe taxes and have a fraudulent intent. Tax fraud or evasion is not simply making a mistake on your tax returns or using legitimate and lawful means to reduce the taxes that you owe, such as the usage of deductions or tax credits. Rather, it is purposely trying to defraud the government and commit tax evasion, beyond a reasonable doubt. Either an individual or a business has the ability to commit tax fraud.
Some examples of illegal tax fraud include the following:
· Intentionally misstating or underreporting your income
· Claiming fraudulent or improper deductions, credits, or exemptions
· Concealing assets to avoid paying taxes on them
· Intentionally providing false information on your tax return
· Failing to file your tax returns as required
· Failing to collect taxes owed and pay them to the government
Tax evasion is a felony criminal offense under federal law. Generally, a person who commits tax evasion can face years in prison and steep fines. An individual convicted of tax evasion also is likely to have to pay restitution to the federal government for taxes that have wrongfully gone unpaid and be placed on probation for a period of time. If a business is found to have committed tax evasion, the business could face even higher fines, and the individuals responsible for running the business also may go to prison.
As this post indicates, the potential consequences of being convicted of tax evasion are severe. We are here to ensure that your rights are not violated and minimize any negative consequences that you may face as a result of a tax evasion conviction. The criminal defense lawyers of Peek & Toland have handled the legal defense of countless individuals who are facing criminal charges. We are here to protect your rights and advocate on your behalf in order to get the best outcome possible in your case. Call our office today at (512) 359-3362 to set up an appointment with our criminal defense attorneys today.