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Tax Relief Counsel:
Federal Tax Fraud Attorney
Tax fraud is a serious legal offense that can have dire consequences for individuals and businesses alike. As a federal tax fraud attorney, I’m on a mission to shield my clients from financial ruin. I fight tirelessly for justice, using my knowledge and experience to help those I work with overcome even the toughest tax-related challenges.
Trusted Tax Fraud Lawyer in Washington, D.C.
The statistics regarding tax fraud and evasion in the United States are concerning.
IRS estimates reveal that underreporting accounts for a staggering 80.24% of the gross tax gap, with nonpayment and underpayment contributing up to five years of the rest. Furthermore, 63.3% of individuals involved in tax fraud cases were sentenced to prison in fiscal year 2021, with an average sentence length of 14 months.
Given the gravity of tax fraud allegations and the potential consequences, professional legal assistance is vital. Our dedicated tax fraud attorney in D.C. is well-versed in federal tax law and ready to provide reliable legal support in your federal tax evasion case.
Contact us today for a confidential free case review, and let us help you fight your tax fraud case with confidence.
What Is Tax Fraud?
Tax fraud is a crime characterized by deliberately providing false or misleading information on tax returns to evade taxes owed (26 U.S. Code § 7201).
The IRS’s Criminal Investigation Division (CI) oversees tax fraud investigations, with cases often assigned to Special Agents. These agents are responsible for probing and prosecuting instances where individuals or businesses use deceptive practices to underreport income, overstate deductions, or engage in other fraudulent activities to reduce their tax liabilities.
What Are the Common Signs of Tax Fraud?
While not definitive proof of fraud, the following activities can raise suspicion and lead to further investigation. Common “badges” of fraud include:
- Concealment of income
- Falsification of records
- Overstatement of deductions
- Failure to maintain records
- Engaging in illegal activities
- Multiple sets of books
- False statements
- Engaging in offshore transactions
- Pattern of non-compliance
- Inconsistent reporting
These practices serve as warning signs for tax authorities and may trigger further scrutiny or investigations into a taxpayer’s financial activities.
Count on Our Tax Fraud Attorney for a Strong Defense
Federal criminal charges require a capable defense. Trust the tax fraud lawyer at Tax Relief Counsel to help you mount a strategic defense against your tax fraud accusations.
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Common Tax Fraud Cases
Common federal tax fraud crimes encompass a wide range of fraudulent activities related to taxes. These cases typically involve individuals or entities attempting to avoid paying taxes, underreporting income, or engaging in deceptive practices to reduce their tax liabilities unlawfully.
Here’s a list of common tax fraud cases:
- Underreporting Income: Deliberately failing to report all earned income, including cash transactions, to reduce taxable income.
- False Deductions: Inflating or fabricating deductions and expenses to lower tax liability, such as overstating business expenses.
- Hiding Income Offshore: Opening and maintaining offshore accounts to conceal income and assets from tax authorities.
- Pyramid Schemes and Tax Evasion: Using multi-level marketing or pyramid schemes to generate income while evading taxes on the earnings.
- False Tax Credits: Illegally claiming tax credits, such as the Earned Income Tax Credit or Child Tax Credit, by providing false information or inflated numbers of dependents.
- Fictitious Expenses: Creating fictitious businesses or exaggerating expenses on tax returns to reduce taxable income.
- Failure to File Taxes: Deliberately not filing income tax returns, often due to the belief that they aren’t required or to evade taxes.
These are just a few examples of common federal tax fraud charges. Tax authorities work continuously to detect and prosecute tax fraud, emphasizing the importance of adhering to tax laws and regulations.
Penalties for Tax Fraud Conviction
Federal tax fraud penalties can be severe and may include both civil and criminal consequences. The specific penalties can vary depending on the nature and extent of the violation and whether it’s a civil or criminal matter.
Below are some common penalties for committing tax fraud per the U.S. Internal Revenue Code:
Civil Penalties
- Civil Fraud Penalty (26 U.S.C. § 6663): Up to 75% of the underpayment of taxes.
- Accuracy-Related Penalty (26 U.S.C. § 6662): Up to 20% of the underpayment of taxes.
- Failure-to-File Penalty (26 U.S.C. § 6651): 5% of the unpaid taxes for each month the return is late (up to 25%).
- Failure-to-Pay Penalty (26 U.S.C. § 6651): 0.5% of the unpaid taxes for each month the taxes are not paid (up to 25%).
Criminal Penalties
- Criminal Tax Evasion (26 U.S.C. § 7201): Up to $100,000 for individuals ($500,000 for corporations) and/or imprisonment for up to five years.
- Willful Failure to File or Pay (26 U.S.C. § 7203): Up to $25,000 for individuals ($100,000 for corporations) and/or imprisonment for up to one year.
- False Statements on Returns (26 U.S.C. § 7206): Up to $100,000 for individuals ($500,000 for corporations) and/or imprisonment for up to three years.
- Aiding and Abetting Tax Fraud (26 U.S.C. § 7206): Up to $100,000 for individuals ($500,000 for corporations) and/or imprisonment for up to three years.
As these regulations make clear, the consequences for knowingly engaging in tax evasion or fraud can be quite serious.
Not Sure About Your Situation?
Reach out to our experienced tax fraud attorney for a free, confidential situation. Secure your future — contact us today!
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Get a Free Case Review!
Your future and financial security are at stake. Act now and contact the knowledgeable tax fraud lawyer at Tax Relief Counsel to protect them.
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How Our Tax Fraud Lawyer Can Help
At Tax Relief Counsel, we understand the seriousness of tax fraud cases. Our team of tax law professionals is dedicated to providing skilled legal assistance and comprehensive support to clients navigating these challenging situations. Here’s how we can help you:
Tax Fraud Defense
We’ll develop a strong defense for your case, protecting your rights and minimizing the potential consequences.
Tax Evasion Defense
If you’re being accused of tax evasion, we can strategically push back against the allegations.
IRS Audits and Investigations
We provide dependable, high-level representation during IRS audits, focusing on safeguarding your rights and interests.
Penalty Abatement
We’ll explore options for mitigating or eliminating potential penalties through legitimate means.
Negotiation with Tax Authorities
Our skilled federal tax fraud lawyer works diligently to secure fair settlements, helping alleviate your tax-related stress.
Legal Representation and Litigation in Tax Court
We can effectively represent you and advocate for your rights in tax court if necessary.
Contact Tax Relief Counsel today to set up a free case review and initiate the process of resolving your tax fraud concerns.
Why Choose
Tax Relief Counsel?
Individuals and businesses that work with Tax Relief Counsel can take advantage of numerous benefits, including the following.
Remote Services
You can access trustworthy legal guidance and support remotely, wherever you happen to be.
U.S. Tax Court Familiarity
Founding attorney Ramy Shabana is admitted to the U.S. Tax Court and offers a comprehensive range of tax-related services, from case reviews to trial representation.
Worldwide Assistance
We proudly serve clients across the U.S. and throughout the world.
Proven Legal Strategies
Our team will formulate, review, and employ strong legal strategies to achieve the best possible outcome for your case.
FAQs
What should I do if I've made unintentional errors on my tax return?
If you’ve made one or more accidental mistakes on your tax return, it’s advisable to seek the assistance of a tax lawyer. The skilled tax attorney at Tax Relief Counsel can assess the possible errors, determine the best course of action, and guide you as you correct the mistakes. Schedule a free, confidential consultation today.
How do tax fraud investigations typically start, and what triggers them?
Tax fraud investigations often commence when tax authorities identify discrepancies in tax returns through information matching. Tax authorities use data mining and analytics to spot irregularities in reporting.
Excessive deductions, unreported income, large financial transactions, and whistleblower tips can also trigger investigations. In rarer instances, consistent non-compliance patterns, industry-specific anomalies, competitor reports, and random audits may prompt heightened scrutiny.
Once initiated, federal tax fraud investigations entail evidence gathering, interviewing, and assessments.
What is tax fraud? How is it different from tax evasion?
Tax fraud involves willfully providing false information on tax returns or engaging in deceptive practices to evade taxes. To be charged with this crime, the offender must showcase deliberate intent to reduce their tax liability unlawfully.
By contrast, tax evasion is any illegal attempt to evade tax-related obligations, including both willful actions and non-willful errors or omissions on tax returns. While it doesn’t always require intent, it can still result in legal consequences.
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Have questions about your tax situation? Don’t hesitate to contact our team to arrange a confidential case review with our experienced tax fraud attorney. Connect with us today!