Tax Fraud Charges- How to Beat the IRS, Role of Tax Attorneys

Tax fraud happens when people or companies intentionally and illegally fail to pay or overpay their tax liabilities. While the IRS may pursue tax fraud both criminally or civilly, federal tax investigators are increasingly pursuing criminal tax charges against people suspected of tax fraud. If you’re charged with tax fraud in New Jersey, it’s very important that you retain a tax fraud attorney from the start to help you navigate the system and fight back against the charges. While tax fraud is fairly easy to commit, defending yourself against this charge can be very difficult.

Tax fraud cases fall into two general categories: tax evasion or tax fraud. Evasion is an act of willfully avoiding tax payments. On the other hand, tax fraud is an act of making misrepresentations or omitting tax credits. Both tax evasion and tax fraud defense attorneys have specific areas of expertise, so it’s advisable to choose a lawyer who deals primarily in one or the other.

 

Tax evasion and tax fraud are both federal offenses. However, state tax fraud may also fall under these statutes. Federal tax crimes include: failure to report earnings, underpayment, or non filing of tax returns. On the other hand, state tax fraud includes: non filing of state tax returns, misrepresentation of income and assets, and non filing of tax attachments. The state criminal penalties for tax evasion and tax fraud increase if the offender knowingly commits the crime of tax evasion or fraud within three years of state tax charges. Additionally, tax fraud defense attorneys face the possibility of criminal penalties for failure to disclose their legal representation during investigations and trials.

 

There are three U.S. Attorneys who handle tax fraud defense cases throughout the country. Assistant United States Attorneys of New York are Acting Assistant Attorney General by designation. Assistant United States Attorneys of California are Acting Assistant Attorney General in that state. And Assistant United States Attorneys of Maryland are Acting Attorneys General of that state.

 

Tax evasion investigations typically begin with an employee, contractor, business owner of a firm, who has knowledge of financial mismanagement. Government tax fraud investigations usually involve employees of accounting firms, CPA’s, and tax fraud defense attorneys. Financial investigations can further be handled by private detectives, Internal Revenue Service (IRS) agents, bankruptcy lawyers, forensic accountants, and private investigators. Government tax fraud investigations can be quite complicated due to the complex nature of the tax code, applicable federal tax laws, and the complicated methods of structuring transactions. Tax fraud investigations also often require cooperation from many different people.

 

Government tax fraud cases also commonly involve large financial institutions such as banks, brokerage houses, multinational corporations, insurance companies, mortgage companies, investment firms, and prepaid credit card companies. The United States Department of Justice (DOJ) and the United States Attorneys Offices (USDOAs) are responsible for prosecuting tax fraud cases. In some cases, state tax fraud laws may require private investigators to act as tax fraud defense attorneys. Private investigators are most often employed in civil and criminal cases, but sometimes they are also needed in cases involving corporate fraud. In such cases, a private investigator may also collaborate with an IRS agent or a tax fraud attorney.

 

Recently, some tax fraud investigations have been handled by federal tax fraud units that are separate from the US Attorneys Offices. These tax fraud investigation units have the authority to designate one agent to coordinate all of the investigative functions of all of the tax fraud elements of the case. This agent then will make regular communications with their tax fraud defense attorneys, investigate any criminal matters that are under investigation, and submit all findings and recommendations to the USDOAs, said newjerseytaxattorney.net. Federal tax fraud investigators do not conduct criminal investigations. Instead, these investigators rely on their knowledge of the most common crimes committed and any witnesses that may be able to provide corroborating evidence against the suspects.

 

While most tax crimes are not criminal acts, it is very possible that tax fraud could lead to criminal charges. If tax fraud is suspected, it is advised that anyone preparing federal tax returns contact a tax fraud attorney as soon as possible. A tax fraud attorney has extensive experience with tax crimes and can assist in developing a comprehensive tax fraud defense. This tax fraud defense attorney will aggressively defend the client’s tax return from any criminal charges that could be filed against them.

IRS Audit Defense Lawyer Protects Taxpayer Rights

An audit request from the Internal Revenue Service can be a very scary experience for all taxpayers. Some people are unlucky enough to be selected for an audit due to their involvement in questionable financial transactions. But this isn’t always the case. If you’ve received a notice of an IRS auditing notice, your best bet may be to call a highly skilled Denver IRS Audit Defense lawyer. A Denver attorney can help you navigate the complex IRS rules and regulations so that you can retain your tax-paying status. If you are looking for one, check out Defense Tax Partners website at https://www.coloradotaxattorneys.net/irs-audit-defense-denver-co/ for your Free Consultation and evaluation of your case!

 

There are two basic types of audits: the Functional Regulatory Meeting ( FRM) and the Urgent Review for Taxpayers (UROC). The Denver taxpayer advocate can help a taxpayer with both types of audits. The IRS cannot deny a taxpayer’s request for an audit until there are substantial and consistent facts indicating a reasonable suspicion that a refund is due. Once the IRS has established a reasonable suspicion, it is up to the audited taxpayer to request that an examination be conducted by the CPA. If a CPA refuses to conduct an IRS examination, then the audit is considered null and void. There are rarely exceptions to this rule.

 

The first task for any tax lawyer or tax resolution specialist is to assess the taxpayer’s individual financial situation. This involves reviewing all documentation provided by the taxpayer, as well as information provided by the government. Often, taxpayers will be asked to provide documentation in the form of bank statements, income tax statements, pay stubs, cancelled checks, utility bills, copies of canceled checks, and IRS payment records. Taxpayers may also need to provide an accounting firm’s statement, a certified statement by a tax practitioner, or a statement from the U.S. office of Education.

 

When taxpayers are preparing their case, they often make mistakes or omissions that result in improper assessment or underpayment. Examples include forgetting an itemized deduction; taking deductions that are not available, or failing to report foreign income. Other common errors include overlooking an employment tax or improperly applying a credit to federal tax liabilities. All of these errors, if they are discovered by the audit defense attorney, can result in the removal or suspension of the taxpayer’s tax debt relief.

 

In addition to reviewing financial records, an audit defense team will review the agency’s own process for identifying the proper taxpayer for a particular audit. Audits are usually targeted at taxpayers who fall within a specific revenue classification, such as those who have nonpayments on tax debts, delinquent taxes, or huge refunds. Because the IRS may target one particular group of taxpayers for a particular audit, the audit defense team must be able to analyze the agency’s methods and its definition of prohibited conduct, as well as the circumstances that led up to the original audit. The tax specialist will also need to explain why the audit is being conducted and why only that group of taxpayers is being targeted for inspection.

 

Having a strong support system is vital for a taxpayer’s entire audit defense process. The IRS audit team will rely heavily on the taxpayer’s cooperation. If the taxpayer fails to provide all the necessary documentation or fail to answer many questions, the audit process will likely move forward with the IRS without further complication. However, should the taxpayer continue to refuse to cooperate or answer questions, the audit could come to a screeching halt. Answering questions truthfully and completely is the best way to protect one’s assets and secure a tax resolution. Taxpayers who are granted extra time or extra funds to prepare and cooperate may ultimately save their tax resolution from being lost due to an IRS audit.