Tax Fraud or Tax Evasion is when a person or business intentionally falsifies tax returns in order to reduce their tax liability. Basically, tax fraud is submitting a false tax return so the person or business does not pay all of the taxes they owe. Tax Evasion is generally investigated by the Internal Revenue Service (IRS) and prosecuted by the United States Attorney’s Office (federal prosecutors).
Federal law sets a maximum penalty of five years in the Federal Bureau of Prisons, a $100,000 fine ($500,000 for a corporation) and the possibility of additional court (and prosecution) costs. The most common examples of Tax Evasion include failing to report income, claiming false deductions, using the business for personal expenses, and unreported cash dealings.
Under Federal Law, there must be an overt act to evade paying taxes in order for the case to be considered as a felony offense. Meaning, that if you simply forgot to file your tax return, it will likely be considered a misdemeanor charge. However, if there is a series of false tax returns or a pattern of unreported income, you could be facing a felony charge.
If you are currently under investigation for tax fraud or if you are currently charged with tax evasion, the Federal Criminal Defense Lawyers at the Noll Law Office are experienced and established lawyers in all aspects of tax fraud, white collar crimes, and federal crimes. If you have received a subpoena to testify at a federal grand jury, or an IRS agent has contacted you regarding tax fraud, our defense attorneys offer free and confidential initial consultations at (217) 414-8889 to discuss your rights and possible defenses.