David Selig explains his Transfer Tax proposal
SELIG & Associates provides the most aggressive tax representation allowed by
law. Specializing in payroll, income and sales tax controversies
for individuals, contractors, restaurants and professional
practices. We settle contested tax audits; payment plans, compromise tax
debts, and resolve all marital tax issues, including innocent spouse relief and
separation of liability.
What exactly is tax fraud? Although the need to file a tax
return is referred to as “voluntary compliance” – individuals must know the
laws and must file when required to do so. 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 for American taxpayers who
willfully, knowingly and intentionally violate their legal requirement to file
their tax returns and pay their taxes every year.
The General Tax Fraud Program is the largest Criminal
Investigation enforcement program within the IRS. The General Tax Fraud Program
encompasses CI’s ranging from tax evasion to money laundering crimes.
CI’s are conducted for individuals and business across all
industries and locations within the United States. Of the CI’s completed,
General Tax Fraud cases require the most substantial amount of CI's resources
and investigation efforts to ensure taxpayer compliance with IRS rules and
regulations.
Criminal investigations look at the stated amount of income,
place and duration of stated employment, and payment of excise taxes.
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
•
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 possible criminal consequences. Civil penalties
include assessing interest of taxes due for the entire period of time for which
they are outstanding, and unlike criminal penalties, civil penalties can accrue
indefinitely.
Individuals who under-report their income by 25% or more are
within the fraud provisions of the IRS rules, and as such, the IRS will be able
to go back for 6 years (as opposed to the normal 3-year statute of limitations)
to charge the individual with an underpayment tax penalty.
If the IRS substantiates a claim of willful intent to evade
paying taxes, they could go back as far as they wish, without any limitation
and assess penalties, fines and interest on all unpaid taxes from the beginning
of the taxpayer’s adult life.
We successfully represent Contractors and Subcontractors before
the New York State Department of Taxation and Finance, the Department of
Justice Tax Division, the Internal Revenue Service, the District of
Columbia Office of Tax and Revenue, the Pennsylvania Department of Revenue, the
Georgia Department of Revenue, the California Franchise Tax Board and the
Defense Office of Hearings and Appeals (DOHA).
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