On: July 8, 2022

Tax Fraud Experienced Tax Expert Pasadena

 

There is nothing wrong with engaging in tax planning to reduce your tax liability.

However, the tax planning must comply with applicable law.  If the tax planning does not comply with applicable law, you may be guilty of tax fraud.

Tax fraud can subject you to significant civil and criminal tax penalties.

How do you defend yourself if you are accused of committing tax fraud?

If you are in Pasadena and are facing a tax fraud case, you need the services of the best tax fraud experienced tax expert in Pasadena.

 

What is Tax Fraud?

 

According to the Internal Revenue Service, tax fraud is an intentional wrongdoing, on the part of a taxpayer, with the specific purpose of evading a tax known or believed to be owing.

Tax fraud requires both:

• A tax due and owing; and
• Fraudulent intent.

Another term for tax fraud is tax evasion.  Tax evasion involves some affirmative act to evade or defeat a tax, or payment of tax.  These affirmative acts include deceit, subterfuge, camouflage, concealment, attempts to color or obscure events, or making things seem other than they are.  Common tax evasion schemes include:

• Intentional understatement or omission of income;
• Claiming fictitious or improper deductions;
• False allocation of income;
• Improper claims, credits, or exemptions; and/or
• Concealment of assets.

As indications of tax fraud, the Internal Revenue Service cites as examples substantial unexplained increases in net worth, substantial excess of personal expenditures over available resources, bank deposits from unexplained sources substantially exceeding reported income, and documents that appear to be altered or false.

As affirmative acts of tax fraud, the Internal Revenue Service cites as examples deliberate or intentional omission of specific items where similar items are included, concealment of bank accounts or other assets, willful failure to deposit receipts to business accounts, and covering up sources of receipts.

Tax fraud also can apply for state tax purposes.  For example, in California, according to the State of California Franchise Tax Board, tax fraud is intentionally underreporting or failing to report income.

 

What Are the Penalties for Tax Fraud – Civil Tax Penalties?

 

Civil tax penalties are monetary penalties attributable to tax fraud assessed against a taxpayer.

The Internal Revenue Service can assess a civil tax penalty equal to 75% of the part of a tax underpayment attributable to tax fraud.

In addition, the Internal Revenue Service can assess a civil tax penalty equal to 75% of the tax liability required to be shown on a tax return if the taxpayer fails to file a tax return with the intent to evade tax.

The standard of proof in a civil tax penalty case is for the Internal Revenue Service to prove the tax fraud by clear and convincing evidence.

States also can impose civil tax penalties.

 

What are the Penalties for Tax Fraud – Criminal Tax Penalties?

 

Criminal tax penalties can be monetary penalties (often called fines) attributable to tax fraud assessed against a taxpayer.  In addition, criminal tax penalties can subject a taxpayer who has committed tax fraud to incarceration.

Criminal tax penalties can be imposed as either a misdemeanor or a felony.

If you willfully attempt to evade or defeat Federal taxes, you can be guilty of a felony, punishable by fines of up to $100,000 and a prison term of up to five years.  If you willfully fail to file a Federal tax return, you can be guilty of a misdemeanor or a felony, with potential punishment including one year in prison for each year you did not file a Federal tax return.

The standard of proof for the Federal government (criminal tax penalty cases are generally handled by Federal prosecutors, rather than by the Internal Revenue Service) in a criminal tax penalty case is higher than in a civil tax penalty case.  In a criminal tax penalty case, the Internal Revenue Service must prove the tax fraud beyond a reasonable doubt.

The Internal Revenue Service can pursue both civil tax penalties and criminal tax penalties against a taxpayer who has committed tax fraud.

States also can impose criminal tax penalties.

 

How to Defend Against Tax Fraud – Hire a Tax Fraud Experienced Tax Expert

 

One of the most important things you can do to defend against tax fraud is to hire a tax fraud experienced tax expert – an experienced tax expert who understands tax fraud and has had successful experience in defending tax fraud cases.

The role of the tax fraud experienced tax expert can begin before you even are accused of committing tax fraud.  If you are engaging in an activity or a transaction that you believe has any risk of later being classified as tax fraud, you should first consult a tax fraud experienced tax expert before engaging in such activity or transaction.  If the tax fraud experienced tax expert advises that you may be committing tax fraud, you should listen.  Obviously, the best defense against tax fraud is not to commit tax fraud.

More commonly, a tax fraud experienced tax expert will represent you when you are accused of tax fraud.  If you are being charged with tax fraud, you should not adopt a “head in the sand” attitude.  The matter will not go away, and you need to retain a tax fraud experienced tax expert to mount your tax fraud defense in the matter as soon as possible.

Among the critical activities that a tax fraud experienced tax expert can perform to help you in your tax fraud case include:

• Researching the favorable law in your case. In a criminal tax penalty case, the statute of limitations possibly can be an effective defense;
• Developing the favorable facts in your case. Very often, the defense in a tax fraud case is based on your lack of intent regarding your tax issue;
• Assessing and understanding the negative law and facts in your case. A key issue in any tax fraud case is whether you should accept the charges (in the hope of receiving a lower penalty) or contest the charges, including potentially going to trial;
• Interviewing witnesses;
• Preparing effective written arguments at each stage of the case;
• Making effective oral arguments at each stage of the case;
• Negotiating with the applicable tax authority; and
• Deciding whether to appeal any adverse result.

 

Leading Tax Group – The Best Tax Fraud Experienced Tax Expert in Pasadena

 

If you are in Pasadena and want the best tax fraud experienced tax expert, you need the services of Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

Leading Tax Group can provide outstanding representation of you at all stages of your tax fraud case.

First, Leading Tax Group knows what the government views as tax fraud.  It can advise you on whether a potential activity or transaction fails to “pass the tax fraud smell test” and should be avoided by you before you engage in it.

Second, Leading Tax Group has successfully represented many taxpayers who have been accused of tax fraud (including using statute of limitations and “lack of intent” defenses).  Leading Tax Group has consistently been able to achieve favorable outcomes for these taxpayers, including, in many cases, helping them avoid a prison sentence.

With its knowledge of tax fraud and successful experience in tax fraud cases, Leading Tax Group is the best tax fraud experienced tax expert (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena to assist you with any tax fraud question or problem.

Leading Tax Group has a conveniently accessible office in Pasadena at 225 S Lake Avenue, 3rd Floor.

If you are concerned about tax fraud, you need to meet with Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) – the best tax fraud experienced tax expert to enable you to resolve your tax fraud issue in a successful manner.

For the best tax fraud experienced tax expert (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena, contact Leading Tax Group now at (800) 900-4250 and schedule your free consultation today!