Most people will never face charges of tax fraud or tax evasion. If you make an accidental error in your tax return, you can usually handle this by filing the proper form and paying a fine. However, if you are accused of intentionally defrauding the government or colluding with others to deliberately conceal your true income, you may face serious consequences.
If you are facing tax fraud conspiracy charges in Baltimore, you should contact an experienced tax crime attorney immediately. Whiteford Tax Defense could explain what these charges mean and help you develop a defense strategy to protect your assets and your legal rights.
Tax fraud, sometimes called tax evasion, is the crime of intentionally and deliberately avoiding paying the taxes you owe to the government. Not all actions you take to lower your tax burden are fraudulent. For instance, properly deducting allowable business expenses on the tax return for your Baltimore business is not fraud, nor is it conspiracy to ask someone else to help you do so correctly. However, deducting personal expenses on your business taxes, for example, could be fraud.
Conspiracy means two or more people agreeing to commit an unlawful act or commit a lawful act by unlawful means. One person must also commit an overt act to further the crime. In the case of tax fraud conspiracy, this could include agreeing to pay wages secretly, intentionally claiming false deductions or exemptions, or deliberately completing and filing false returns for a Baltimore business.
All parties must knowingly participate in the fraud for it to be a conspiracy. For instance, if your employer misrepresented your withholding on your paycheck to make their quarterly returns appear higher, and you were unaware of it, you would not be a party to the fraud.
Tax fraud can be investigated and charged civilly or criminally. If the fraud was unintentional, the Internal Revenue Service (IRS) is primarily concerned with recovering the back taxes. Civil penalties can be high, including up to 75 percent of the back taxes, plus interest, and the unpaid tax.
Intentional fraud can be a felony, with penalties of up to five years’ imprisonment, fines of up to $500,000, and restitution of the unpaid taxes. If multiple parties are involved, as in a conspiracy, the government may require individuals to testify against one another before it considers reducing charges.
One possible defense against tax fraud allegations is a lack of intent. If you did not intend to defraud the government, even if you failed to file your tax returns or made mistakes, you may not have committed fraud. Another possible defense is a lack of knowledge. Conspiracy requires that all parties knowingly participate in the fraud. If you were unaware of the fraudulent actions, you could be cleared of conspiracy charges. A third possibility is administrative error. Mistakes occur on the IRS side as well; if agents made errors during the audit or in reviewing your case, you could be given time to correct errors in your filing.
Protecting your assets and legal rights during an IRS investigation requires proper legal assistance. If you are facing tax fraud conspiracy charges, you should seek immediate help from an experienced Baltimore lawyer.
If you are facing tax fraud conspiracy charges in Baltimore, you cannot afford to wait to see what happens. You need legal assistance immediately. At Whiteford Tax Defense, we have the answers you need to resolve your tax questions. Our experienced attorney could assist you in dealing with the IRS and refiling documents to secure yourself more time and avoid criminal penalties. Call our office today.