Orlando Tax Fraud Lawyer

What Constitutes Federal Tax Fraud?

Despite your best efforts and good intentions, you might make a mistake when you prepare your tax return given the complex nature of the U.S. tax system. While that mistake could result in owing the IRS additional money if you incur a penalty, it does not constitute tax fraud. Tax fraud, as defined by the IRS, involves “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 second element (fraudulent intent) is what separates honest mistakes from tax fraud. Most tax crimes are governed by 26 U.S. Code § 7201 which makes it a felony to “…willfully attempt in any manner to evade or defeat any tax imposed by this title or the payment thereof…” There are numerous ways in which tax fraud can occur, including:

• Failing to file a tax return.
• Failing to pay taxes due, including income, employment, payroll, and various other types of taxes.
• Falsifying a tax return.
• Knowingly helping someone prepare a false tax return.
• Participating in a refund scheme.
• Not reporting or underreporting income.
• Failing to disclose foreign income.
• Including false or inflated deductions on a tax return.
• Money laundering.
• Making a false statement on a tax return.

 

What You Should Know about Tax Fraud in the United States

The IRS Criminal Investigation (CI) unit is a federal law enforcement agency tasked with investigating suspected tax fraud in the U.S. According to the IRS, tax fraud was rampant during the COVID-19 pandemic with the CI unit having investigated 1,644 tax and money laundering cases related to COVID fraud potentially totaling $8.9 billion. In 2022, 61,142 cases were reported to the U.S. Sentencing Commission, the federal agency responsible for collecting data related to federal crimes and sentencing. Of those cases, 401 involved some type of tax fraud. About three out of four (73 percent) of tax fraud offenders are men and most (84 percent) have no prior criminal history. Just over half (59.3 percent) of offenders were sentenced to prison with an average sentence of 13 months.
 

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

Pursuant to 26 U.S. Code § 7201, tax fraud is charged as a felony, carrying a term of imprisonment of up to five years and/or a fine of up to $100,000 per offense for a conviction. Corporations face a fine of up to $500,000 per offense. According to the U.S. Sentencing Commission, sentences for tax fraud are typically increased (upward departure from the Sentencing Guidelines) for aggravating factors 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.

As a former federal prosecutor, Orlando tax fraud lawyer Davis Haas has first-hand experience with the federal sentencing process. While avoiding a conviction is always the goal, attorney Haas knows what factors can be leveraged to give you the best chance at a decreased (downward departure) sentence if a conviction is unavoidable.
 

What Should I Do If I Receive a Target Letter?

A “target letter” is often used in federal “white collar” criminal investigations, including tax fraud, to let a suspect know that they are under investigation by federal authorities. Along with alerting you to your status as a “target” of an investigation, a target letter may direct you to contact a federal prosecutor and/or to produce records or documents. While you should never ignore a target letter, do not respond or act on the letter without first consulting with an experienced Orlando tax fraud lawyer. Attorney David Haas will review the letter and the facts of the case with you before deciding how best to proceed. Getting attorney David Haas involved immediately affords you the best chance of stopping the investigation in its tracks before criminal charges are filed against you.
 

What Defenses Are Available in a Federal Tax Fraud Case?

Realizing that you are the target of a federal tax fraud investigation can be a frightening experience; however, it is imperative to remember that being charged with a crime is not the same as being convicted of a crime. Attorney David Haas will utilize his considerable experience, resources, and commitment to defend you with the goal of avoiding a conviction. The facts and circumstances of your case will determine the best defense strategies; however, some common defenses to accusations of tax fraud include:

• 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 Orlando Tax Lawyer

The sheer size and complexity of the federal tax codes and regulations often make it difficult to avoid mistakes when preparing or paying taxes. If you believe you are the target of an over-zealous federal tax fraud investigation or you have been charged with tax fraud, contacting an experienced Orlando tax fraud lawyer immediately is the best way to protect your rights, your future, and your freedom.

Attorney David Haas is dedicated to using the knowledge and experience he gained as a federal prosecuting attorney to help protect and defend people just like you who have been accused of committing tax fraud. Let the team at Haas Law get to work helping you if you are under investigation or have been charged with tax fraud.

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.