Willful Tax Fraud in Richmond

Tax fraud goes beyond making a mistake when you prepare your federal income tax return, although the Internal Revenue Service (IRS) could still fine you over the unpaid amount if investigators catch it. What they really want to stop is those who make a willful attempt to avoid paying a tax bill, either by falsifying records, failing to file, or understating income.

Although some aspects of your tax return can seem open to an alternate interpretation, there are specific rules. IRS agents are trained to spot indicators of willful tax fraud in Richmond, and the only criminal tax lawyer in the area at Whiteford Tax Defense is highly skilled at advocating for you.

How Does the IRS Consider Willfulness?

When you have an obligation to pay taxes, you willfully commit fraud when you hide income or assets to avoid filing a tax return and paying your taxes, and your act is intentional, deliberate, and purposely committed.

Willful avoidance of this obligation can be a civil or criminal matter. Sometimes, the IRS conducts parallel proceedings to try and charge you with both. To determine if your mistake is willful, the IRS considers three factors:

  • Intent: Deduced from your behavior, evidence uncovered, and certain of your activities that suggest a plan that points to your intent to deceive the IRS
  • Knowledge: Can be more relevant when you prepare your own taxes and evidence is uncovered that you underreported income, provided falsified documentation, or used a false social security number
  • Purpose: Submitting a tax return with falsely deducted expenses and far less income than you earned shows your purpose was to evade paying the taxes you legitimately owe

If there is no evidence to support willfulness, the IRS will assume you were negligent when preparing your taxes. Although you probably will not be charged with criminal tax fraud, you will most likely receive an accuracy-related penalty of 20 percent of the money you should have paid. A civil matter can balloon into a criminal one, and even civil accusations of intentional tax fraud in Richmond are serious enough to retain legal help.

Tips to Follow if the IRS Charges You with Tax Fraud

If you receive notice or suspect that the IRS is investigating you, it is time to call a tax attorney who is well-versed in handling IRS matters, both civil and criminal. Knowledgeable legal guidance could be the difference between negotiating a resolution and litigating it.

Begin now to preserve your tax records that you suspect will interest the IRS. Your attorney can strategize with you and suggest what needs to be located. Do not destroy or alter any records or other evidence, and do not contact any potential witnesses to discuss the situation. The IRS could accuse you of tampering with witnesses and falsifying records, making matters worse.

Your tax attorney can represent you during meetings with IRS agents and ensure that your answers are truthful and that you are cooperating with the investigation into willful fraud in Richmond.

Whiteford Defends Richmond Taxpayers Against Willful Fraud Charges

Your tax attorney will work toward a resolution that could mean you can avoid a trial. You may be able to pay the money you owe or avoid it if your attorney finds evidence that supports your position. The key takeaway when wealth, taxes, and the IRS are involved is that you need a practices attorney by your side. Our attorney is the only one in the area who negotiates and litigates criminal willful tax fraud cases in Richmond. Call now to schedule a consultation.