Defending Charges of Tax Fraud
In 2020, there were nearly 65,000 cases of tax fraud reported to the United States Sentencing Commission, averaging roughly $340,000 each. While many people may believe career criminals are the ones perpetrating these crimes, only about 15 percent of these individuals had any significant prior criminal history.
What Constitutes Tax Fraud?
Tax fraud involves activity used to avoid paying taxes. That usually means facts are misrepresented or withheld to benefit the fraudster. It’s intentional, not simply a typo or mistake. It commonly involves underreporting earnings, using a fake Social Security number, failing to pay owed taxes, or falsifying information or documents. Identity theft and filing fraudulent returns are everyday crimes dealt with by federal workers on a regular basis. Payroll tax fraud, too, is common, and could involve underreporting the number of workers, pocketing collected withholding taxes, unemployment, or social security, or paying employees under the table to avoid having to pay taxes. Finally, those who file fraudulent regulatory reports related to offshore banking could find themselves in serious trouble with the IRS. Sometimes companies outsource services, which is perfectly legal. For instance, Company A may contract with Company B to do janitorial services. Company B is then responsible for collecting and paying the employment taxes for those employees. But they can avoid taxes and shut down and disappear before the government ever gets their cut, which is another form of tax fraud.
Who Commits Tax Fraud?
The 2020 statistics indicate that men are the greatest offenders of tax fraud laws:
- More than seven in ten offenders were male;
- Over half were white;
- About 30 percent were Black;
- Hispanics made up just under 10 percent.
- The average age of offenders was 52 years old.
What Kinds of Penalties Were Given Out?
Two-thirds of offenders served prison sentences for their crimes; the average term was 16 months. Roughly six in ten offenders received sentences within the guidelines, while about one-third of offenders received significantly reduced sentences.
If You are Accused of Tax Fraud
If you have any indication that the IRS suspects you of fraudulent activity, you need to respond to their queries straightaway, especially if a complicated return or substantial wealth is involved. Now is the time to team up with an experienced criminal defense attorney. Gather pertinent records and be thorough and honest in all of your interactions with the IRS. Even though you may feel stressed, the best way to help yourself is to cooperate fully with authorities. The dedicated and knowledgeable Las Vegas criminal defense attorneys at Lobo Law will fight to protect your rights and achieve the best possible outcomes for you. To discuss, schedule a confidential consultation in our Las Vegas office today.
Source:
ussc.gov/sites/default/files/pdf/research-and-publications/quick-facts/Tax_Fraud_FY20.pdf
