Tax Fraud and Evasion
If you are the subject of a criminal tax investigation for tax fraud or tax evasion charges, or you are seeking tax amnesty for unclaimed income, you need an experienced New York Tax Lawyer who understands the tax laws working for you. Get a free consultation with a skilled tax attorney today.
There are several different types of when is owed, 3) under-reporting your , or claiming excess deductions that reduce your , or 4) assisting others in the illegal conduct described above.. You may be guilty of committing a if you intentionally avoid paying taxes by either 1) intentionally submitting false returns, 2) failing to file your
and Evasion Investigations
A the by their Division (CID), 2) your State General or Department, or 3) the county District , in the county that you reside. often originates from a referral from a auditor when they suspect illegal conduct. A criminal is usually investigated by either 1)
These governmental agencies employ investigators and agents trained in techniques and tactics, and act in a similar manner as police detectives to investigate the potential .
A is a very serious matter. Please do not discuss the issues with the investigators, or any other person until you obtain legal counsel who specializes in issues. A or charge against you has the potential to result in imprisonment. When you learn, or suspect that you may be the target of a , your best course of action is to immediately contact an experienced since they have the training and experience to assist you. for or
For IRS matters, once the investigation is completed and the special agent in charge of the case recommends , the IRS conducts many levels of review before a final decision is made to forward the case to the United States Department of Justice Division in Washington, D. C., for . At the U.S. Department of Justice, Division, prosecutors specializing in criminal review the case and make the final decision whether the case should be prosecuted. If the Department of Justice, Division, approves of the file, the case is transferred back to a local U.S. ‘s office with the direction that the individual, or individuals, be prosecuted for the offenses alleged.
In most , this multi-tiered review and approval process can work to your advantage. This is the case since there are a number of different opportunities for your counsel to influence your case before it ever reaches the final decision makers. If it is a State , the State General or the County District , will decide if the case merits a , and your criminal has the ability to influence this decision as well. cases, whether for or
Under the Internal Revenue Code, a person who is convicted of felony is defined as “[a]ny person who willfully attempts in any manner to evade or defeat any shall be fined up to $100,000 for an individual and up to $500,000 for a corporation and/or face up to 5 years in prison. In addition to the fine and/or jail time, a felony-convicted will also be responsible for the costs of prosecuting the case. The two basic types of evasion include: evasion of assessment and evasion of payment. The evasion of assessment includes failure to file or filing a false return. One common example we often see if where the IRS claims that imposed by this title or the payment thereof…”. In addition to a felony conviction, one who is found guilty of felony criminal not all of the taxpayers was included in their returns, based upon reviewing the taxpayers bank statements. Evasion of payment occurs after a is assessed and usually involves the concealment of assets available to pay taxes.
and false statements, under the Internal Revenue Code include willful statements and representations on any or other document that “is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter.” Making fraudulent and false statements under the penalties of perjury are also actionable .
Criminal and committing are serious offenses that carry serious consequences. The common thread in these offenses is willfulness. A must intentionally act or refused to act where required, but that is difficult to prove for all parties involved (the US or ).
Both the and New York State take the evasion of paying taxes seriously and will conduct a are serious charges. If either or both agencies are able to prove that you purposely did not pay taxes, you will face monetary penalties, as well as the possibility of prison. if they believe that you are doing so. Therefore, and
You may be found guilty of committing if you intentionally avoid paying by:
- Claiming excessive deductions, exemptions, or credits
- Knowingly falsifying returns
- Not filing your when is owned
- to Pay
- to Keep Records
- Concealment of assets
- Failure to cooperate with
- Engaging in or attempting to conceal illegal activities
- Preparing returns that take excess deductions or incorrect dependents
- Making a false statement
Once a commences, you need the experience of a to obtain the best results. A or charge can result in large monetary penalties or imprisonment. Typically, unlike a civil audit, only the cases where it can clearly be shown that a problem exists will the case move forward as a . for or
A . Once the investigation is complete, the agent will often recommend . can be initiated at any time. Often it will originate from a auditor working for the IRS or New York State who believes that there is illegal conduct. If the investigation is by the IRS, their Division (CID) will be building the case against you. If the initiates in your state, the investigation will be done by either the State General or the county District for the county that you reside in. In either case, these agencies employ agents and investigators who are skilled in finding and
If you are facing a federal charge, the agent in your case will often recommend . The IRS will review the case before deciding to bring the case to the Department of Justice, Division, in Washington D.C. At this level, prosecutors who specialize in criminal will review the case and make the final decision if it will be prosecuted. If the Department of Justice, Division approves , the case goes back to a local U.S. ‘s office with the direction that the individual should be prosecuted for the . or
If you are facing a state charge, the State General or the County District will decide if the case should be prosecuted. Typically, the AG office or state will take their cue from the Department. or
The process leading up to , you could prove your innocence at a lower level and never face . is complex and multifaceted, but this can be an advantage to the . Since there are multiple tiers that your case has to go through, with the help of an experienced New York
If you are facing criminal or charges you may need to engage a . Actions that you make which you believe are correct could significantly hurt your case. You need an experienced who knows the system and can anticipate any problems to work towards a successful resolution.
, , or sales matter. amnesty is a limited time opportunity for a specified group of taxpayers to pay a defined amount of amount owed, in exchange for forgiveness of a (typically the penalties owed) relating to a previous period or periods and without fear of . The Amnesty program typically is not available when some authority begins an investigation of the past-due unpaid taxes. In NYS this program is known as a voluntary disclosure. In that program, the first makes the written disclosure to the Department related to the issue involved. Such examples can be unfiled returns, returns filed but with underreported or excess deductions, or business type matters related to unpaid collected sales , or unfiled sales returns. The is given a choice once they make a full disclosure of selecting the number of years that are “fixed”. For sales collected but unremitted cases the minimum period of correction is six years. Otherwise, three years is the norm. Once the department accepts the disclosure, they enter into a contract with the and the files the needed returns. With the balance owed with or unfiled sales returns, it can be paid at once, or a payment plan can be established. Therefore, the voluntary disclosure process is a good way to avoid a whether its an
By: Timothy S. Hart
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