The Internal Revenue Service (IRS) accuses you of tax fraud if you misrepresent or fail to disclose a material fact about your income when you file your annual tax returns. You may claim fewer assets or less income than you earn, or claim more deductions than you have the right to claim.
Fraudulent reporting and non-reporting can lead to severe penalties, both civil and criminal, including for failing to file your Report of Foreign Bank and Financial Accounts (FBAR), which the IRS is cracking down on as businesses have more of a global presence and sophisticated analytics make fraud easier to detect. How long does the IRS have to investigate you? Is there a statute of limitations for Richmond tax fraud? Reach out to our tax fraud attorneys to learn more about your legal options.
The IRS can charge you with civil or criminal tax fraud after auditing your returns and further investigating any improprieties. All civil disputes have statutes of limitations except this one. The IRS has no limit on how long it has to enforce civil penalties.
While many people believe the IRS cannot audit them after 10 years, that 10 years represents the limit on enforcing and collecting the tax debt, but if the debt is reduced to a judgment, the IRS in most jurisdictions can renew the judgment every 10 years.
The IRS abides by other statutes of limitations, such as the three-year limit if you fail to file an informational return or the six-year limit for willful failure to pay your taxes. Under 26 U.S. Code § 6501, there are three main situations when the IRS does not have a time limit to proceed against you for civil tax fraud: filing a false or fraudulent return intentionally to evade paying taxes, any willful attempt to evade paying taxes, and failing to file a tax return.
Because tax matters like the statute of limitations for fraud in Richmond are complicated, seek guidance from Whiteford Tax Defense, the only criminal tax attorney in the area.
The IRS enlists the help of the Department of Justice (DOJ) if a tax fraud matter is deemed criminal. You may or may not be visited by an investigator asking for tax records. A federal prosecutor can pursue the matter, and depending on the circumstances, negotiate a settlement with penalties or take you to court after charging you with criminal tax evasion or fraud. Remember that tax fraud can be a civil or criminal action, and there is a statute of limitations for criminal tax fraud.
Because your freedom could be compromised with a criminal conviction, the prosecutor must prove you are guilty beyond a reasonable doubt, a higher standard of proof than for civil cases. Courts, prosecutors, and defense attorneys know that witnesses’ memories fade, and evidence is less relevant or harder to come by over time, so the statute of limitations for criminal tax fraud in Richmond is usually six years. The court will determine whether criminal charges are filed in a timely manner, with your attorney presenting facts and circumstances to argue in your favor, such as how long ago the fraud was detected or alleged by an investigator.
Between the IRS Manual rules and US Codes, filing your income tax returns can be challenging. If you make a mistake, either unintentionally or to save yourself money, and an IRS auditor catches it and begins to investigate you, do not panic. Civil matters can be negotiated, and if you end up in court on criminal charges, you are entitled to competent representation.
Whiteford Tax Defense is highly experienced in complicated tax matters and employs strategies tailored to your situation to get the best outcome for you. Contact us now to schedule a consultation with our attorney to determine whether the statute of limitations for Richmond tax fraud applies to your case.