Tax fraud is the intentional concealment of facts, either criminal or civil, that would affect the assets of a taxpayer. Tax fraud can include any of the following acts: knowingly concealing income; paying tax twice; structuring transactions to avoid tax; or using offshore bank accounts or other tax havens to evade tax. Tax fraud often involves taxpayers intentionally misrepresenting the status of their financial affairs to the tax authority.
Tax fraud is extremely complicated and the penalties for tax evasion and criminal tax investigation can be very severe. Serious tax crimes carry criminal tax evasion charges, while simple tax fraud might only result in financial penalties or a fine. In some cases, criminal tax investigations may result in prison time. The IRS (Internal Revenue Service) and its tax fraud investigators are constantly looking for new ways to cracking down on tax cheats. Recently, the IRS has developed a new tool, known as the tax fraud audit planner, which can help taxpayers with tax fraud and evasion cases.
Tax fraud occurs when someone commits a crime using a false statement or omissions. Federal criminal tax law punishes anyone who commits these crimes by using false information or omissions in their federal tax returns. These laws are extremely complex and are not readily understood by most taxpayers. Even most tax attorneys do not understand all the intricate details of the federal tax code. If you have been charged with or suspected of committing a federal tax fraud involving a federal tax return, you should immediately contact a highly experienced tax fraud attorney who is experienced with the complex laws regarding tax fraud and federal tax laws.
A seasoned tax fraud attorney in Arizona can help you from being wrongly accused of criminal tax fraud or tax evasion. In recent years, the IRS (Internal Revenue Service) and state tax enforcement agencies have dramatically increased their budget for conducting criminal tax investigations and cases. These agencies are now spending billions of dollars a year to conduct wide ranging investigations including bank accounts, property and other assets. Many times, taxpayers will be targeted for audits and criminal tax investigations that are based solely on suspicion. In many cases, the investigations end up being baseless and the taxpayer may even be innocent of any wrongdoing.
Unfortunately, in some instances an innocent taxpayer will be prosecuted for tax fraud and/or tax evasion. The majority of federal tax crimes are committed through payroll deductions, asset tax fraud, and tax avoidance schemes. Other crimes include: asset tax evasion, misrepresentation of income and expenses, false statements, non-filing of tax returns, tax haven accounts, tax evasion, tax fraud and money laundering. Some state tax crimes include: tax evasion, misrepresentation of assets and liabilities, tax crimes and fraudulently calculating income and expenses.
In some cases, victims of tax fraud and evasion may be able to recover some or all of their losses through civil tax fraud and injury attorneys. An attorney who specializes in tax crimes and can prove the innocence of the victim can obtain a large percentage of recovery through a civil suit. In some cases, victims may never recover any funds, while in others they may receive a substantial amount for their loss.