What is Tax Fraud?

White Collar crimes are nonviolent crimes that usually lead to an illegally obtained financial gain. Usually associated with businesses or organized crime, White Collar crimes can be tried as either federal or as State crimes, depending on the circumstances.

Tax fraud is one very common type of White Collar crime. Tax fraud can result from filing a false tax return, filing false documents, tax evasion, failure to collect employment taxes, failure to pay any taxes, and failing to file a tax return. One of the most frequently occurring white collar crimes, tax-related offenses can be very serious. Penalties for mistakes when filing taxes are often monetary and involve only the Internal Revenue Service (IRS). However, if federal charges are involved, the penalties can increase dramatically.

What is the difference between a careless mistake and tax fraud one might ask. Tax fraud or evasion usually involves an intentional wrongdoing, something to gain a financial advantage. Carelessness when reporting taxes or filing paperwork is not fraud. When the IRS is deciding whether a person has committed tax fraud, they look for indicators which include:

  • Inadequate records
  • Understatements of income
  • Failure to file tax returns
  • Inconsistent or unlikely behavior
  • Hiding of assets
  • Failure to cooperate with audits
  • Failure to make estimated tax payments, or
  • Engaging in illegal activity

If the IRS believes it's reasonable to prosecute someone for falsifying their tax report, they will often heavily investigate in order to gain a criminal, federal conviction. Convictions of this sort are not only serious, but can also result in detrimental financial repercussions and irreversible damages to one's professional image. If you or a loved one is being audited by the Internal Revenue Service, you will need an experienced Tax Fraud Attorney.

The IRS is an extremely powerful government institution with unlimited resources. The slightest action taken during an IRS investigation can turn a simple mistake into a full-fledged tax fraud case. Lessem, Newstat & Tooson, LLP can help pilot a client through the intense Internal Revenue Service audit and design an effective strategy to combat the investigation. With not only your financial well-being, but also you profession reputation at stake, you need an aggressive attorney to fight your case. Call Lessem & Newstat, LLP today!