Receiving a written notice from the Internal Revenue Service (IRS) regarding a potential tax fraud investigation can be terrifying. The administrative consequences that come with these sensitive, or “eggshell,” investigations can be steep enough, even without considering the fact that some of these investigations may lead to criminal charges. Thankfully, a dedicated tax lawyer could help prevent these charges from ever materializing.
It could be possible for you to address allegations of fraud directly with the IRS upfront. Often, this approach might conclude the investigation early on in the process. But just like talking to the police, there are risks in dealing directly with the IRS. That is where a Rockville tax fraud lawyer could help. With the guidance of focused legal counsel, you could obtain a favorable outcome from a tax fraud investigation.
Tax fraud is a term that describes an effort to unlawfully limit the amount of tax debt an individual or business owes. For fraud to occur, these actions must be willful or intentional. In many cases, tax fraud results from misrepresentations on a tax return or other official form.
There are numerous ways in which an individual could engage in tax fraud. These efforts could begin with intentionally leaving out material information on an income tax return. This could include substantially underreporting income or overstating deductions. The purpose of these actions could be to limit the amount of tax that is owed to the IRS.
Businesses have also been known to engage in tax fraud. In addition to providing fraudulent tax returns, these efforts could also include falsified payroll tax information. Business tax fraud could also cover the failure to withhold or report payroll or income taxes. This is frequently accomplished by concealing cash transactions.
Central to every allegation of tax fraud is a person’s intent. For an action to be fraudulent, there must be an intentional or willful effort to shortchange the government on what it is owed. This means that there cannot be negligent or careless tax fraud. One way a Rockville fraudulent tax activity lawyer could help during an investigation is by establishing that a tax discrepancy was not fraudulent.
There are multiple forms of investigations used by the IRS. In some cases, they will merely conduct an audit. If there is reason for the IRS to find that tax fraud has occurred, it could result in a civil investigation, which does not result directly in criminal prosecution. However, it could lead to a finding that fraud was possible or likely. During audits and civil investigations, IRS investigators will typically work with a taxpayer and their local tax fraud attorney to obtain documents and answer questions they have about the filing.
If the IRS determines fraud has occurred, they could initiate a criminal investigation. If this investigation leads to charges, it could have a long-lasting effect on you and your freedom.
Thankfully, a Rockville tax fraud lawyer could help you prevent things from escalating to criminal charges. They could advocate on your behalf, ensuring you have the chance to make things right before a criminal investigation becomes necessary. Call today to learn more.