What is Tax Fraud?
As working residents of a country we are legally responsible for filling out a tax return every year when required, to determine the amount of tax we owe to the government. Although, a large percentage of Americans do take the effort to properly file their tax returns. A small percentage of individual try to cheat out of their tax obligation, committing a tax fraud.
Knowing What is Illegal
One of the problems many people have with taxes is that they don’t know what’s legal and what’s illegal. While some taxpayers intentionally deceive the government, others do so only accidentally. The Internal Revenue Service (IRS) estimated that in 2007, taxpayers underpaid the government by $345 billion. Unsurprisingly, tax collectors are less than happy about losing the national income afforded by taxes, and they will investigate suspicious tax returns in order to catch the people who are, in effect, stealing from the government.
Tax Fraud Alerts
“If it sounds too good to be true, it probably is!” Don’t become a victim to any scheme that offers instant wealth or exemption from your obligation as a United States citizen to file tax returns and/or pay taxes. Some of these schemes can literally cost you your life savings. Others can result in your prosecution and imprisonment if you knowingly participate in them.
Taxpayers should be very careful when choosing a tax preparer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.
There have always been individuals who, for a variety of reasons, argue taxes are voluntary or illegal. The courts have repeatedly rejected their arguments as frivolous and routinely impose financial penalties for raising such frivolous arguments. Take the time to learn the truth about frivolous tax arguments.
How does tax fraud affect me?
Since dishonest people are not paying their fair share, there is not a “level playing field” for businesses or consumers. This can sometimes lead to higher prices, possible tax increases, and inadequately funded school systems as well as other government supported programs. The burden of covering these shortages falls on honest taxpayers and the public in general.
What Is Tax Fraud Crime?
The crime of Tax Fraud covers a wide range of crimes that include the serious offence of tax evasion to the more minor one of non-filing of a tax return. Just as with many other areas of life, there are specialist attorneys that deal with tax fraud, representing those accused of the crime and those who prosecute as well.
Do not mistake a tax fraud lawyer for someone you will contact to help file your tax returns as their sole purpose is to represent people accused of tax crimes. If you require their services then either the worst is about to happen and you suspect the IRS are investigating you or they have concluded their work and have charged you with tax fraud offences. Often the purpose of hiring a tax fraud lawyer is to assist with negotiations between themselves and the IRS to come to an arrangement where the taxes due can be repaid without a term of imprisonment for tax fraud.