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Taxation Law

Getting the Best Tax Attorney to Get Away with Tax Violations

Tax fraud refers to any criminal violation of the Internal Revenue Code. Tax fraud can be defined as willfully misrepresenting the true state of affairs with the tax authorities. Tax fraud often involves taxpayers intentionally misrepresenting the status of their finances to the Internal Revenue Service, said ArizonaTaxAttorneys.Net. The purpose of tax fraud is to reduce the amount of taxes paid and/or to ensure the government gets its money.

 

A person charged with criminal tax fraud faces severe criminal penalties. The maximum penalties, a person can face include: imprisonment, fines, and forfeiture of property, including assets of the accused. If one’s crime involves financial gain, then he could face heavier penalties. An example of a tax crime is if a taxpayer owns a business and fraudulently reduces his company’s earnings to lower the amount of tax he is required to pay. In such a situation, if the person is declared bankrupt, he will be liable to imprisonment not just for one year but for the rest of his life.

 

There are several ways to commit tax fraud, including structuring ones’ own tax return. Another way is if an individual or organization to form a corporation in another state and uses that corporation to carry out all tax transactions in the state where it is registered. Tax fraud may also take place through false statements on tax returns and statements submitted to the IRS. The best way to fight against tax fraud in the United States is to inform the IRS immediately after one suspects that a person is committing fraud.

 

Some other common ways to commit tax fraud include providing false information on tax returns, using someone else’s Social Security number, using a person’s debit card to pay tax bills, and using an employee’s tax refund to pay personal expenses. Other tax frauds committed include using one’s car for personal purposes. Also, some tax cheats try to enter into a structured settlement with the IRS.  This scheme allows an individual to shift part or all of the liability of tax to relatives, friends, charities or other entities. One of the most common scams that tax cheats indulge in involves opening a bank account under another name.

 

ArizonaTaxAttorneys.NetTax fraud can manifest in different ways. The most common fraud is tax evasion, which is when an individual intentionally tries to evade the tax obligation by any means possible. For instance, if an individual has a business plan that involves shifting his tax liability to his wife, then he may be committing tax fraud. On the other hand, tax fraud is also possible if a person owns a house that he does not use, thereby avoiding the payment of his liability. If he owns a villa in Spain and uses it as his personal office, he is committing tax fraud.

 

Tax fraud is a crime, and like all criminal activities, it can attract penalties, fines and even jail time. However, people who commit tax fraud are unlikely to suffer any long-term consequences, as the penalties for tax evasion are relatively minor. Therefore, even though there are some serious issues involved in tax fraud, the crime itself is not considered to be very serious.

Categories
Taxation Law

Charged with Tax Fraud?- Hire the Best Tax Attorney

The increasing number of tax crimes and liabilities being filed for years has led to the need for developing specialized investigative services. While the IRS will do what it takes to collect the tax due, those who commit crimes, have the motivation and means to evade and hide their financial responsibilities. As a result, tax frauds, tax evasion and tax crimes have risen dramatically over the last two decades or so. Click here to learn more about tax laws and tax lawyers.

Criminal investigations into tax crimes are often complicated by the fact that not all tax crimes are criminal in nature. There are crimes that relate to conduct that is seen as ethical conduct, such as the use of a bank account to avoid taxes. Such crimes would usually be considered civil offenses rather than crimes, but the IRS still has the right to pursue criminal proceedings against those who engage in criminal acts, regardless of what type of conduct they were engaged in.

 

Criminal tax frauds may include attempts to escape paying taxes, or attempt to mislead the tax collectors by hiding assets or bank accounts. These types of frauds may be very simple for the taxpayer to carry out or involve complicated strategies that involve deception and concealment of assets.

 

In addition to tax frauds, there are many other tax crimes that can arise from a failure to pay taxes, or from a tax evasion case. Examples of tax crimes include tax evasion, false statements to the tax authorities or filing false income tax returns. All of these tax crimes can be difficult to prosecute without the help of an experienced investigator.

 

Criminal investigations into tax crimes involve a wide range of tools and techniques. This includes but is not limited to, computer forensics, interviews, surveillance, undercover operations and document gathering.

 

Because there is no statute of limitations on the crimes, it is important to hire an investigator to conduct criminal investigations into tax crimes. Because the IRS is not willing to offer any financial assistance to taxpayers who are unable to pay their taxes, it is up to the taxpayers themselves to be proactive in their efforts.

 

To conduct criminal investigations of tax crimes, it is necessary to have the cooperation of the IRS. Since the IRS does not want to be seen as taking advantage of citizens, it is in the interest of the government agency to work with the investigator to make sure that the investigation is done properly, and that they do not become involved in a case in which they will be accused of unfair or unwarranted tactics or methods.

 

There are some organizations that offer tax investigation services, but this will depend on the amount of time that is needed to carry out the investigation and how well the agency can provide the services. A good and experienced investigator will have years of experience and knowledge of the laws and methods used to gather evidence in tax cases.

 

Criminal investigations of tax crimes can help the IRS to get the money owed or to deter future crimes. It also can increase the amount of revenue collected by the IRS and prevent tax frauds.