Tax fraud is a White Collar federal crime in the United States that can be carried out by individuals or organizations pursuant to 26 U.S.C. Section 7201.
It involves knowingly and wilfully evading assessment or not paying the tax you are required to pay by federal law. In other words, someone intends to defraud the Internal Revenue Service and not pay their tax that they are liable to pay.
If you’re under investigation for Tax Fraud and facing Federal Charges and Prison, contact us now so we help you pre-qualify for early release programs authorized by the Federal Bureau of Prisons.
This is different from tax avoidance, which is legal in the United States. Some examples of tax fraud include deliberately not filing an income tax return, which you’re required to do. In addition, it can mean not paying due taxes, not reporting all your income, or making a false tax return.
It’s their duty to investigate and if need be arrest an individual taxpayer for fraud, as well as corporate entities.
It is important to note that the IRS knows mistakes and errors can happen when dealing with income tax returns. If the IRS decides it was a mistake and no obvious signs of fraud, they’ll not call the situation fraud.
This can be referred to as negligence. The IRS understands that tax law can be confusing and this is considered when they are investigating. There can be fines for this mistake but it will not be classed as taxpayer fraud under 26 U.S.C. section 7201.
If you are found guilty of committing tax fraud in the United States, the penalties can be severe. This includes receiving a fine and prison sentence. This includes a fine of up to $250,000 for individuals and this increases to up to $500,000 for organizations. In addition, you can receive a prison sentence of up to five years.
This will also include the cost of prosecution of your case. The penalties for tax fraud are detailed under 26 U.S.C. section 7201. Some factors influencing the severity of penalties for fraud include financial loss by the government, abuse of a public position, and the person’s role in the crime.