While navigating the Internal Revenue Code is complicated and honest mistakes are not uncommon, individuals and businesses that intentionally fail to pay taxes, make underpayments or underreport income can face criminal charges such as tax evasion and tax fraud. If you are being investigated by the Criminal Investigation Division of the IRS, you need an experienced tax attorney to protect your rights.
The Blair Law Office provides comprehensive legal services to clients in Colorado who are facing criminal tax charges. Our firm believes that anyone under investigation by the IRS has rights, and we leverage our knowledge and skills to level the playing field.
Badges of Tax Fraud
There are a variety of activities that the IRS considers to be criminal offenses, and investigators look for indicators or “badges” of tax fraud including:
- Failure to file income tax returns
- Understating income
- Insufficient records
- Concealment of income or assets
- Failure to cooperate with tax authorities
- Dealing in cash
- Engaging in illegal activities
- Attempting to conceal illegal activities
- Implausible or inconsistent explanations of behavior
- Failure to make estimated tax payments
- Filing false documents
In short, criminal tax offenses are classified either as evasion of tax payments or evasion of tax assessments. In order to have grounds for a case, the IRS must demonstrate that these actions were a willful violation of the Internal Revenue Code. If the IRS finds evidence of such a violation, criminal charges can be brought that can lead to an order to pay back taxes, interest, fines and prison sentences.
Common Types of Fraud
Tax fraud crimes, including willfully evading or underpaying taxes, can lead to felony charges. Common types of fraud include:
- Tax refund fraud
- Tax preparer fraud
- Corporate/ business tax fraud
- Employer tax fraud
Individuals who knowingly attempt to obtain a tax refund will be required to pay financial penalties while tax preparers who commit fraud may face lengthy prison sentences. Corporations that circumvent tax laws often pay hefty fines and responsible individuals in a business can also be held criminally liable. Lastly, employers that fail to withhold and pay federal income and employment taxes or engage in other tax avoidance schemes can also be prosecuted.
Bold & Aggressive Representation
Although there are legal methods for avoiding or minimizing income taxes, committing tax evasion and tax fraud are criminal offenses with serious consequences. At The Blair Law Office, we aggressively defend our clients from Denver, Arapahoe County, Adams County and Jefferson County against the IRS. The firm is committed to achieving successful outcomes. If you or your business is under a criminal tax investigation, contact The Blair Law office today.