Deliberately avoiding to pay your full tax obligation puts you at risk of a tax fraud charge. There’s no escaping the IRS; you can expect to pay hefty fines and even face a prison sentence if found with intent to defraud the government. While being a victim of identity theft is one avenue to being charged with tax fraud if you’re innocent, negligence when filing your records can also put you in trouble. Tax fraud types include, but are not limited to, the following:
- Failure to file a tax return;
- Failure to report all income, including overseas;
- Failure to pay your employee’s payroll tax (for businesses)
The IRS recognizes that the tax code is so complex that honest mistakes can easily appear to be some form of criminal activity. Nonetheless, a tax fraud charge can be a very big problem for taxpayers who fail to show a clean slate. If you are accused of tax fraud, talk to a local tax attorney to come up with a good defense.
To defend a client from a tax fraud charge, a tax attorney will usually try to show that the purported fraud stems from a negligent error or a misunderstanding of the code. Different forms of evidence are used to show that the mistake was committed without an intent to defraud the government.