Tax and IRS Fraud

Tax fraud is a significant issue that costs the government billions of dollars annually. To tackle this problem, both Summit County and the IRS have introduced whistleblower programs. These programs encourage individuals to report businesses and individuals who evade tax obligations by offering financial incentives.

Common Tax Fraud Schemes

Tax fraud can take many forms. Some of the most frequently encountered schemes include:

• Illegally avoiding sales tax payments
• Claiming fraudulent credits
• Concealing or failing to report income
• Inflating deductions or expenses
• Engaging in under-the-table payments or misclassifying employees
• Promoting or investing in fraudulent tax shelters
• Hiding income in offshore accounts

Facing an investigation or accusation of tax fraud is an intimidating and stressful experience. Federal prosecutors and IRS agents may not only scrutinize your tax returns but also question you personally about your financial activities. This is where the expertise of a capable Akron federal lawyer becomes indispensable. At Youngstown Criminal Law Group, we bring a deep understanding of the law and are prepared to defend your rights against federal authorities.

What Is Federal Tax Fraud?

Federal tax fraud is defined under law as any deliberate action to defraud the government by evading tax obligations. Common examples include:

Illegal actions under federal law:

• Filing fraudulent tax returns with false income reports
• Submitting falsified documentation
• Failing to submit a complete tax return
• Willfully evading taxes owed to the government
• Failing to collect and remit employment taxes
• Engaging in money laundering activities

Often, during audits or investigations, auditors might conflate mistakes made on tax forms with fraud. They focus primarily on intentional violations such as hiding assets, reporting false income, or not cooperating during IRS investigations. However, simple errors or misunderstandings might be wrongfully categorized as deliberate fraud.

Generally, an IRS audit will aim to collect unpaid back taxes along with penalties and interest. However, if tax fraud is suspected after an audit, the consequences can be far graver. You could face severe penalties, including criminal investigations. If you live in Akron or Summit County, consulting an Akron federal attorney is essential to safeguard your interests.

Additionally, if you are already under federal investigation for a separate matter, federal authorities often examine your tax returns for discrepancies. They particularly scrutinize expenditures that significantly exceed your reported income, which may lead to allegations of undisclosed income or related crimes, including tax fraud.

Penalties for Federal Tax Fraud

Being convicted of tax or IRS fraud comes with heavy penalties. These may include:

• Fines up to $100,000 for individuals
• Fines up to $500,000 for corporations
• Imprisonment in a federal facility for up to 5 years

Beyond the fines and imprisonment, you may also be required to cover the costs of prosecuting each tax crime. This often results in financial liabilities far exceeding the original owed taxes.

How an Akron Federal Attorney Can Assist

To convict someone of tax fraud, prosecutors must prove beyond a reasonable doubt that the accused acted deliberately and willfully. An experienced Akron federal attorney will work diligently to challenge this. They will argue that any errors in your financial records were unintentional or due to a misunderstanding of the law, not willful evasion.

When you face accusations of fraud, you will encounter determined prosecutors and stringent legal processes. Our top-rated criminal defense lawyers in Summit County will carefully explain your legal options and strive to secure the best possible results for your case.

Get Professional Legal Support

If you’re dealing with allegations of tax fraud, it’s crucial to seek expert legal representation. Schedule a complimentary initial consultation with an experienced Akron federal lawyer by visiting our website or dialing (330) 992-3036 Don’t wait to protect your rights and get the guidance you need.