Tax / IRS Fraud


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Being investigated for tax fraud is a terrifying experience. Both the IRS and federal prosecutors will not only pour over every line of your tax returns, agents from the IRS Criminal Investigation Division will also show up at your home or office to question you about every aspect of your income and expenses. You will need to hire an attorney with in-depth understanding of the law as well as the ability to stand up to federal authorities on your behalf.

What You Need To Know About Federal Tax Fraud

Federal law makes it illegal to:

  • File a false tax return that under reports your income
  • File false documents
  • Fail to file a return at all
  • Evade paying the taxes you owe to the federal government
  • Fail to collect employment taxes

The government does draw a difference between making a mistake on your taxes and tax fraud. Auditors will be looking for willful and deliberate misconduct – not math errors or carelessness.

In particular, they will be looking for actions such as concealing assets, understating income, failure to cooperate with the IRS and illegal activities.

If the IRS audits you, in most cases they will only seek to collect your back taxes plus interest and penalties. However, if, after the audit, they conclude you have committed tax fraud, they may either impose a large civil tax fraud penalty or turn you over to their criminal investigators.

If the federal government is investigating you for another federal crime, they will often go over your tax returns too. They will be looking for large expenditures that exceed your reported income, and if they find them, they will consider it to be a clue that you have been receiving income from illegal sources. Additionally, you can be at risk of tax fraud along with the activities they allege you committed.

Individuals convicted of tax fraud can fined up to $100,000 (a corporation can be fined up to $500,000) and/or sent to a federal prison for up to five years. You will also have to pay the costs to prosecute each separate tax crime.

How A Lawyer Will Help

When you are up against a fraud charge, you will be facing inflexible laws and a determined US prosecutor. You will need an attorney who can help you determine all of your options and achieve the best outcome for your circumstances.

United States Code

Read more about federal criminal offenses in the United States Code.

Questions? Contact us today.

If you are charged with a federal crime, the consequences can be devastating. Fienman Defense will fight tenaciously to protect your constitutional rights. We will guide you through a court system that can be complex and intimidating, and provide you with the strongest possible defense.