Tax crimes can be very difficult to think of, especially if one has committed such an act. However, it is not impossible to be protected by the law once this has been committed. Here are a few things to consider when building a tax crime defense.
First, it is important to check just what constitutes a tax crime. Tax crimes, or tax frauds, is where someone makes “fraudulent misrepresentations” of tax returns while knowing they are not correct. A tax crime is a statement on the tax return that underestimates the amount of taxable income one has. This can also be false statements on the tax reforms themselves.
Simple intentional mistakes in filing papers can have harsh penalties, so be very extra careful in filing them. Those who have unfortunately met the crosshairs of the IRS and have been charged of tax evasion can still have time to make a good defense.
First of all, it is important to know your “strategy” on the entire matter. What can the IRS potentially claim that can be used against the charged? There is always weight on each fact and argument that can be used, so when building a defense, always try to destroy it and make another one from the ground up. This allows the charged and the lawyers time to plan for every eventuality.
The main rule in making a suitable defense against an investigation from the IRS is to make sure the client did not actually commit any tax crime. This is important as the government always has the burden to prove that the charged in question actually has intentionally committed fraud. However, there are always situations such as misfiling or computer error that may have caused the “improper documentation” of taxes. These possibilities have to be taken care of when considering a good defense.
Always remember to check the rules and regulations one must have to follow when filing taxes, as penalties can reach for up to a fine of USD 500,000 and even five years of jail time. Although these depend on the severity of the tax crime in question.
If possible, one may want to be careful even before investigations begin. Those who own businesses should be careful in the accountants they hire, as they are responsible for ensuring everything is in order.
The same thing goes for audits and offering to pay. For instance, if the IRS has decided to seek a criminal indictment, paying the IRS may even imply an admission of guilt and be used against the charged in court.
Those who want to be sure can also go to nearby local offices to get a better clarification. If possible, ask for a consultation with a tax lawyer in order to get the specifics of such an eventuality.