Tax fraud is recognized when someone misrepresents something on their tax returns. Underreporting or adding tings onto your tax return that don’t actually apply to you would be considered a form of tax fraud and it is a punishable crime. There is a difference, however, between someone who made a mistake on their taxes as opposed to someone who willingly reported they made less income than what is stated on their return. Waitresses and others who work in fields where tips are required to be reported to the IRS sometimes claim they took in less because there is no actual proof of how much they made in tips. But the IRS has ways of monitoring this and will take action if an auditor finds your income tax return is suspicious.
Depending on serious your tax fraud crime is will determine what sort of action the IRS wishes to take. They could force you to pay civil fines or transfer your case to the IRS’s criminal investigation division. If you have recently learned that your tax return is being audited or you are being accused of tax fraud, now is the best time to procure a Utah tax attorney with the help USAttorneys can offer.
Tax Statutes and Penalties for Tax Fraud
Tax fraud can occur in many different ways and there are various penalties the IRS enforces with each crime. For example, below is a breakdown of the penalties for someone who attempted to willfully evade or defeat their tax based on §7201.
While you are required to comply with the IRS demands, you need to tread carefully if you know you committed tax fraud or made a mistake and failed to report the corrections. The IRS is powerful and has the potential to make your life much more stressful than it might already be. If they are requesting information or questioning you, the best thing you can do is hire one of our Utah tax attorneys immediately and discuss with them all the information that is current and accurate.
USAttorneys is your number one source to help get you paired up with a local UT tax lawyer in your city. In most cases, the IRS sets a deadline for you to comply so you don’t want to waste another minute being uncertain or unclear as to what your next move should be.