Willful Tax Fraud in Baltimore

When you act willfully, you do so deliberately, as opposed to accidentally, and the Internal Revenue Service (IRS) will make that distinction if its auditors investigate you. Although most investigations are civil matters, you can be charged with a crime if fraud is detected.

If there is a serious mistake on your annual federal tax return, or you fail to file one or pay what is owed, the IRS or Department of Justice (DOJ) may notify you that you are being investigated. You do not want to face a government agency alone, as they have exceptional power and resources. If you are accused of willful tax fraud in Baltimore, contact Whiteford Tax Defense, the only criminal tax lawyer in the area now to help you resolve the matter.

How Does the IRS Define Tax Fraud?

The IRS treats tax fraud as intentionally acting in a way to avoid paying your federal income taxes. If errors are spotted by an IRS agent reviewing your return, they may initiate a civil investigation, but if they suspect tax fraud, the Criminal Investigation Division (CID) will send agents to your home or business to speak with you and potentially request tax documents.

The Internal Revenue Manual (IRM) IRM Section 25.1.2.3 lists warning signs agents make themselves aware of during an investigation. These include:

  • Overstating your deductions
  • Finding income that was not reported on tax returns
  • Finding two sets of books for a business
  • Discovering you have substantial income but have not filed tax returns for several years

CID agents determine whether to involve the DOJ if they intend to prosecute. If you suspect or know the IRS is looking into your tax returns, a willful tax fraud attorney in Baltimore can intercede and negotiate with the IRS on your behalf.

Civil Investigations Can Turn Criminal

The IRS does not always announce that you are under criminal investigation, but you should be aware of some signs that could indicate your civil matter has turned criminal. An agent who is auditing your returns as a civil matter can suddenly end that investigation and decline to issue a report, or you, a spouse, or business partner may be contacted by a CID agent. Remain calm and contact a Baltimore willful tax fraud attorney to negotiate with the IRS on your behalf and dedicate resources to the best outcome for you.

Penalties for Willful Tax Fraud

The United States Code contains the penalties for tax fraud, but before you come to this stage, let our attorney straighten out the problem. According to 26 United States Code § 6663, the IRS can charge you a civil penalty of 75 percent of any taxes you willfully underpaid.

Federal prosecutors heavily rely on 26 U.S.C. § 7201, which categorizes willful tax fraud as a felony in Baltimore. The prosecutor must prove this charge beyond a reasonable doubt, which is a higher bar than the burden in civil matters. The penalty upon conviction is a fine of up to $100,000 or up to $500,000 for corporations, up to five years in prison, or both. Contact the only criminal tax lawyer in the area now to preserve your reputation and freedom.

Get Help Now from a Skilled Willful Tax Fraud Attorney in Baltimore

The Internal Revenue Service is diligent if agents suspect you of willful tax fraud in Baltimore. Our experienced attorney employs several strategies to resolve your case and avoid criminal charges or fight them. Contact Whiteford Tax Defense for personalized and dedicated advocacy from the only criminal tax attorney in the area. If you are aware that the IRS is investigating you, take the first step now.