Saturday, February 18, 2017

What the Hell is Tax Fraud?





What the hell is tax fraud?

Tax Fraud occurs when individuals working and earning income knowingly and intentionally fail to file their income tax return or falsify information on a tax return.

Failing to state the correct amount of earned income, overstating deductions and exemptions and falsifying documents are all possible elements of tax fraud and are punishable in both criminal and civil jurisdictions. 

The process of concealing or transferring income and reporting personal expenses as business expenses are also examples of tax fraud and are actual violations of the law.

How IRS Criminal Investigations Work

IRS Criminal Investigations ("CI") is the law enforcement branch of the IRS. CI’s are conducted on taxpayers who willfully, knowingly and intentionally violate their legal requirement to file their tax returns and pay their taxes every year.

Tax Crimes and IRS Charges


Criminal Investigations can charge individuals with a number of crimes, all of which fall into four major crime categories:
  • Legal Source Tax Crimes
  • Illegal Source Financial Crimes
  • Narcotics-Related Financial Crimes
  • Counterterrorism Financing
Many of the crimes within the jurisdiction of CI have criminal and civil liabilities attached. Crimes that individuals can be charged with include (but are not limited to):
  • Tax Evasion
  • Attempt to Defeat Tax
  • Tax Evasion Avoidance/li>
  • Additional Tax Due
  • Willful Failure to Pay
  • Willful Failure to Keep Records
  • Fraudulent Statement to Employer, etc.

What Happens When the IRS Catches Offenders?

If an individual is caught cheating on their taxes, they will have to deal with the civil and criminal consequences. For more information, call us at (212) 974-3435

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