Federal law includes a wide range of behavior that is illegal, and much of it relates to the failure to pay tax obligations or comply with Internal Revenue Service (IRS) guidelines. In addition to nonpayment of taxes, criminal charges can also be filed for fraud related to Paycheck Protection Program (PPP) or Employee Retention Credit (ERC) claims.
If you have been accused of wrongdoing, a Richmond tax crime lawyer may be able to help. While charges could have steep consequences that impact you for years to come, there are also options to defend yourself with the help of a dedicated tax attorney.
Most of the investigations by the IRS remain administrative matters. While there is the potential for fines and penalties, few people or companies are at risk of criminal conviction. However, there are times when the IRS may pursue these charges.
Most of the time, the federal government seeks criminal prosecution for intentional acts of tax fraud. In many cases, this includes tax evasion or filing a false return. Only a small percentage of taxpayers will ever face criminal charges during the course of an investigation by the IRS.
Our Richmond tax crime attorneys could help defend you or your business against these charges. Some cases occur as the result of honest mistakes by taxpayers, while others are the result of errors within the IRS. Having the support of a lawyer could help resolve a case favorably.
The IRS has sought criminal prosecution for alleged violations of the PPP. This COVID-19 pandemic-era program was designed to provide businesses with funds to meet payroll while shut down.
This kind of fraud often comes in the form of stacking loans, which means obtaining multiple loans from different lenders. There are cases where businesses applied and received money from multiple banks despite only qualifying for one loan because multiple financial institutions offered these funds. Other acts of fraud can involve false statements on an application or certification. Our tax crime attorneys in Richmond could assist you with these types of situations.
Outside of tax fraud, the IRS could also seek criminal charges related to false filings involving ERC fraud. This program was created in an effort to help companies retain employees during the COVID-19 pandemic.
The unfortunate reality is that there have been numerous allegations of fraudulent behavior involving this program, and the federal government has taken steps to penalize it. ERC fraud can occur when a business files duplicate claims, inflates the amount of employee wages it owes, or falsifies documents in order to appear eligible for relief.
A conviction for ERC fraud could lead to fines, penalties, and even incarceration in federal prison. There are different defense strategies available, and our Richmond IRS tax crime attorneys could advise on the right approach.
Some defenses focus on a good-faith attempt at compliance. If you made an honest attempt to comply with the program, you might face mandatory repayment, but you have not committed a crime. Fraud is a crime of intent, meaning accidents or honest mistakes are never prosecutable.
If you are under investigation by the IRS, it is vital that you speak to legal counsel right away. A Richmond tax crime lawyer could help you in a variety of situations, whether you have been accused of fraudulent PPP loans or falsified information on your tax returns. Call us today to discuss your options and learn about your best chance to resolve these issues.