Orlando Federal Tax Fraud Lawyer

What Is Federal Tax Fraud?

The federal tax system in the United States is complex and complicated. Whether you are only responsible for paying individual income taxes or operating a business that is obligated to pay a variety of taxes, mistakes can happen. A legitimate mistake is not tax fraud. The Internal Revenue Service (IRS) defines tax fraud as “an intentional wrongdoing, on the part of a taxpayer, with the specific purpose of evading a tax known or believed to be owing.” To be considered tax fraud, both of the following are required:

1. A tax must be due and owing.
2. There must be fraudulent intent.

The fraudulent intent element is the key to the crime of federal tax fraud. Failing to pay taxes owed because you made a genuine mistake is not the same as intentionally failing to pay taxes owed and due. Common examples of tax fraud include:

• Failure to file a tax return.
• Failure to pay taxes due.
• Failing to pay employment and payroll taxes.
• Filing a false tax return.
• Refund fraud schemes.
• Failing to report or underreporting income.
• Participating in a money laundering scheme.
• Assisting in the preparation of a fraudulent return.
• Inflating or falsifying deductions.
• Making false statements related to tax reporting.
• Failing to disclose offshore bank accounts or foreign income/assets.

How Significant Is the Tax Fraud Problem in the United States

To better understand why federal authorities aggressively pursue suspected tax fraud in the United States, it helps to consider some facts and figures compiled by the U.S. Sentencing Commission:

• In 2021, of the 57,287 cases reported to the U.S. Sentencing Commission 370 involved tax fraud.
• More than 2 out of 3 (67.9 percent) tax fraud offenders are men.
• Most (82.1 percent) tax fraud offenders have no prior criminal history.
• The median loss to the government for tax fraud offenses is $278,325.
• Over 1 in 10 instances of tax fraud involves an amount greater than $1.5 million.

What Are the Potential Penalties for a Federal Tax Fraud Conviction?

While various other criminal offenses are frequently intertwined with investigations involving tax fraud, 26 U.S. Code § 7201 governs the crime of tax fraud. Under that statute, you face a term of imprisonment of up to five years and/or a fine of up to $100,000 per offense if convicted of tax fraud. Corporations face a fine of up to $500,000 per offense. According to the U.S. Sentencing Commission, two out of every three tax fraud offenders were sentenced to prison with an average sentence of 14 months in prison in 2021. If convicted of tax fraud, your sentence could be increased for things such as:

• Using sophisticated means to execute or conceal the offense.
• Having a leadership or supervisory role in the offense.
• Abusing a public position of trust or using a special skill.
• Obstructing or impeding the administration of justice.

What Should I Do If I Receive a Target Letter?

Often utilized when federal authorities are investigating a “white collar” crime, such as tax evasion, a Target Letter lets you know that you are being investigated for a crime. It may also ask you to contact federal authorities and/or produce documents, records, or other evidence. If you receive a Target Letter advising you that you are under investigation for federal tax fraud, do not ignore the letter; however, do not agree to meet with the authorities or produce requested evidence without first consulting with an experienced Orlando federal tax fraud lawyer.

What Defenses Are Available in a Federal Tax Fraud Case?

If you find yourself targeted by a federal tax fraud investigation, remember that being accused of a crime is not the same as being convicted of a crime. An experienced Orlando federal tax fraud lawyer is the key to preventing a conviction. Your attorney may employ common tax fraud defenses in your case, such as:

• Making a convincing argument that you made an honest mistake.
• Proving that you lacked the required intent to commit tax fraud.
• Relying on a mistake of law.
• Proving that you used legal (albeit questionable) tax loopholes.
• In some cases, your reliance on a tax professional.

Get Help from an Experienced Federal Tax Fraud Lawyer

Given the inherent complexity of federal tax codes, laws, and regulations, it is surprisingly easy to find yourself accused of tax fraud. If you believe you are the subject of a tax fraud investigation, or you have been formally charged with tax fraud, acting quickly to protect yourself is crucial.

As a former federal prosecuting attorney himself, attorney David Haas is in a unique position that allows him to anticipate how a federal investigation will proceed and potentially intercede on your behalf before the investigation becomes a prosecution. If you are ultimately charged with federal tax fraud, the team at Haas Law will utilize their considerable resources, exceptional skills, and unwavering dedication to defend you throughout the prosecution of your case.

Call us at 407-755-7675, chat with us online, or submit our online form today. Because we understand that time is of the essence when federal law enforcement authorities are investigating you, our calls are answered 24 hours a day, allowing you to schedule an appointment as soon as possible to discuss your legal options.