Tax fraud happens when people commit tax evasion or any criminal tax crime to evade paying taxes, said tax attorney Virginia. The penalties for tax evasion can result in substantial financial harm and even prison time. Because tax fraud is a violation of the Internal Revenue Code, it is important that you retain a competent tax defense attorney if you are charged with this offense.
Tax fraud occurs when people engage in deliberate acts or unlawful actions intentionally and knowingly underpay their tax liabilities or neglect to report an income or other tax obligation. While the IRS can pursue criminal tax evasion charges either criminally or civilly, recent federal prosecution of individuals charged with tax fraud has been more aggressive. In some cases, victims have received jail sentences or hefty fines. In other cases, the government has merely levied more fines or filed civil fraud charges.
Tax fraud investigations often start with a customer’s written statement, which is then used as the basis for pursuing tax fraud charges. Many tax fraud investigation teams conduct thorough interviews with clients, including prospective clients, to determine the circumstances surrounding the suspected fraud. Because tax fraud is committed by many different parties – accounting firms, accountants, employees, contractors, etc. – it is sometimes difficult for tax fraud investigators to build a comprehensive case against the suspected party.
False statements frequently come into play in tax fraud cases. Under the law, making false statements on tax forms can result in criminal tax evasion or criminal fraud charges, said tax law VA. For example, a person could falsely state that they have employed a particular hobby activities when in reality they did not. This would constitute a false statement and could subject them to imprisonment.
In some instances, federal tax fraud investigations lead federal prosecutors to information that has previously been hidden from the public. For example, one prosecutor recently pursued a case against a man who had intentionally declared bankruptcy while still working as a consultant. The client had hidden this fact from most financial and 
accounting firms. After discovering this information, federal tax liabilities were brought forward. The man ultimately pleaded guilty to several counts of tax evasion and falsifying tax returns. As part of his plea deal, he was sentenced to two years in federal prison.
A tax fraud attorney can help clients avoid prison sentences and other serious legal penalties that come with tax evasion or fraud. Attorneys also help clients negotiate deals with IRS agents. To get the best possible legal defense, clients should be proactive in protecting their rights. If you have been charged with criminal tax fraud charges, you should contact a tax fraud attorney as soon as possible. The lawyer will assess your case and discuss your options with you. You will likely have to enter a guilty plea before your attorney can discuss the recommended strategy with your criminal defense attorney.
In some situations, the IRS will issue a notice of default. In such cases, the taxpayer will owe the IRS money by the end of the current year. Such defaults are not very common, but it is still your tax obligation. If you owe the IRS money, a tax fraud defense attorney can help you work out a plan to resolve the issue. If the tax problem cannot be resolved by discussing with the IRS, then your tax lawyer can recommend to you an expert who can help you overcome the problem.
A former IRS agent exposed systemic fraud at the largest IRS field office under his leadership March 18 in a highly-awaited testimony before a Senate panel. The former agent, William Thomas, offered a vivid and disturbing description of how auditors from the Internal Revenue Service’s internal criminal investigation unit go about their business. His testimony provided the most comprehensive overview of the problems faced by the Internal Revenue Service since April 2021. In his written testimony, Thomas described how the Internal Revenue Service’s inspector general’s office, which is responsible for overseeing tax audits, does not take appropriate action to ensure tax payers are being cheated. He further stated that he has been fired and that investigations of possible criminal activity by IRS employees have been halted while the IRS conducts an internal review of its policies and practices related to taxpayer trust accounts. While no charges have been filed yet, the Internal Revenue Service is preparing documents for possible litigation and has warned all potential victims that it will be looking into their cases.