Not all Internal Revenue Service (IRS) investigations are related to criminal matters. Some agents are tasked with handling IRS civil investigations for fraud in Baltimore. While these cases might not be criminal, the consequences remain significant.
If you are being investigated for tax fraud, it is vital that you rely on the support of qualified legal counsel. The sooner you speak with an experienced tax defense attorney, the more likely you are to avoid a fine or other consequences.
When the IRS suspects that you have engaged in tax fraud, it has several options available regarding enforcement. For major cases, the federal government often pursues criminal charges for tax fraud. There is also the potential for civil investigations.
It is important to note that being charged with the crime of tax fraud does not prevent the IRS from opening a civil investigation in Baltimore. This means you may face additional civil liability after being charged with a crime.
Civil investigations into tax fraud can stem from a taxpayer’s honest mistake. These cases might involve you accidentally failing to report your income fully or claiming a deduction that was not available to you.
Civil investigations also involve errors with filing returns. For example, the IRS might open an investigation if a taxpayer files their return after the deadline or fails to file at all. The purpose of these cases is to recoup what the government is owed with interest, in contrast to punishing wrongdoing.
The major difference between criminal and civil cases is that you risk incarceration if you are convicted of a crime. Criminal cases carry more serious consequences than civil cases. The IRS is more likely to pursue criminal charges when it believes that you intentionally underpaid taxes or failed to report your income.
Typically, the actions by taxpayers in a criminal case go beyond making mistakes or underreporting income. There is often an active effort to defraud the government using improper deductions, false documents, or the hiding of assets overseas. Criminal cases are handled by special investigators with the IRS Criminal Investigation division.
There is a risk of incarceration in these cases, in addition to fines of up to $100,000. However, the government must meet a higher standard of proof in criminal cases. This higher standard sometimes results in the IRS pursuing a civil case when there is insufficient evidence of intentional fraud.
The reality for some people facing IRS civil tax fraud investigations in Baltimore is that they may ultimately face significant monetary fines. While a civil case does not carry the risk of incarceration, the consequences can be substantial.
The primary penalty in a civil case is financial. This could come in the form of fines if you made late payments or incorrectly calculated your tax debt. Typically, these payments amount to a percentage of what you owe the government as opposed to a fixed maximum fine.
If you are facing IRS civil investigations for fraud in Baltimore, it is important to explore your legal options as soon as possible. With the appropriate legal counsel, you might be able to avoid any penalties and resolve your case with minimal financial impact.
Acting promptly improves the possibility of reaching a favorable resolution. Reach out to discuss your situation with our attorney who handles tax defense.