Tax fraud is the act of purposely misrepresenting your income or assets on your tax return to avoid or reduce the amount of taxes you owe. Here in the United States, tax fraud charges should be taken very seriously they can result in substantial civil penalties or jail time
The Internal Revenue Service (IRS) is responsible for the governing of taxation in the US. Whether you are an individual or corporation, you need to file your tax returns correctly and on time. Any failing in this regard makes you liable for tax fraud. If you face charges of such kind, it is essential to consult a legal professional proficient in tax fraud law.
US Code sets forth the details of the actions that are within the category of tax fraud. Each has serious penalties like imprisonment and fines. Here is a brief overview of the actions that may lead to your penalization.
Title 26 US Code § 7201 – the attempt at evading or defeating taxes is the felony. Penalties include imprisonment for maximum five years and fine of $250,000, for individuals, and $500,000, for corporations.
Title 26 US Code § 7202 – willful failure in collecting or paying taxes is the felony. Penalties include imprisonment for maximum five years and fine of $250,000, for individuals, and $500,000, for corporations.
Title 26 US Code § 7203 – willful failure in filing return, supplying information or paying taxes is a misdemeanor. Penalties include imprisonment for maximum one years and fine of $100,000, for individuals, and $200,000, for corporations.
Title 26 US Code § 7206 – filing, or aid in the filing, fraud, and false statements is a felony. Penalties include imprisonment for maximum three years and fine of $250,000, for individuals, and $500,000, for corporations.
Note: Additional costs of prosecution are also part of the fine.
Title 26 US Code § 7212(A) – an attempt at interfering with the administration of Internal Revenue laws may result in penalties like three years (maximum) imprisonment and fines of $259,000 for individuals and $500,000 for corporations.
Title 18 US Code § 371 – any conspiracy about committing offense or defrauding the United States is a serious accusation. In case of conviction, the parties may face penalties like imprisonment for maximum five years and fine of $250,000, for individuals, and $500,000, for corporations
The severity of penalties sure brings about the importance of such an accusation. Sometimes, an individual may not even intend to commit tax fraud. An error or omission on their part may be interpreted wrongly and lead to an accusation. If this sound just like your situation, it is high time you talk to an attorney.
Only in-depth knowledge of tax fraud law makes one capable of coming up with a strong defense. Your attorney knows how to prove that yours was an ‘honest’ mistake and it was not your intention to commit a fraud.