Tax / IRS Fraud

Every year, the government loses vast sums of revenue due to tax fraud. To fight back against these losses and recover funds, the IRS and authorities in the Harrisburg area have launched whistleblower initiatives. These programs offer rewards to individuals who report businesses or people who are dodging their tax obligations.

Common schemes used to defraud the tax system include:

• Unlawfully evading the payment of sales taxes
• Falsely claiming tax credits
• Hiding income or failing to report it, as well as exaggerating expenses or deductions
• classifying employees incorrectly or making payments “under the table”
• Investing in or promoting fraudulent tax shelters
• Concealing revenue in offshore bank accounts

Becoming the target of a tax fraud investigation is an intimidating ordeal. Beyond a simple review of your tax returns, federal prosecutors and agents from the IRS may aggressively question you regarding your personal finances. In these high-stakes situations, having a reputable Harrisburg federal criminal lawyer on your side is vital. At Logue Law Group, we have deep knowledge of the legal landscape and are ready to defend you against federal inquiries.

What is Federal Tax Fraud?

Under federal law, the following activities are considered criminal offenses:

• Filing fraudulent returns that knowingly misstate income
• Providing falsified documents
• Failing to file a complete tax return
• Intentionally avoiding tax payments owed to the government
• Neglecting to withhold or pay employment taxes
• Participating in money laundering activities

The government often struggles to distinguish between an honest mistake on a tax form and a deliberate act of fraud. During an audit in Pennsylvania or Dauphin County, auditors will look closely for signs of intentional misconduct. However, they can sometimes misinterpret simple errors or carelessness as illegal behavior. They typically focus on red flags such as hiding assets, underreporting earnings, or a lack of cooperation during investigations into illicit activities.

When the IRS conducts an audit, their primary goal is usually to collect back taxes, along with any accrued interest and penalties. However, if the audit leads to accusations of fraud, the stakes are much higher. You could face severe financial penalties or a criminal investigation. If you are a resident of the area, consulting a legal professional is critical to protecting your rights. Furthermore, if you are already under federal investigation for another offense—perhaps a situation requiring a Harrisburg DUI attorney—investigators will likely examine your tax returns as well. They look for discrepancies, such as significant spending that outpaces your reported income, viewing this as evidence of unreported illegal profits. This scrutiny can quickly lead to tax fraud charges alongside other criminal accusations.

What Will be the Penalty?

If you are convicted of Tax or IRS fraud, the consequences are life-altering. Individuals can face fines up to $100,000, while corporations may be fined as much as $500,000. Beyond financial ruin, you could be sentenced to serve up to 5 years in a federal penitentiary.

It is also important to remember that you will be liable for the costs associated with your prosecution for each specific tax crime. This often results in a total debt that far exceeds the original amount of taxes owed. Given the severity of these penalties, securing a Harrisburg federal criminal lawyer immediately is essential for your future.

Ways in Which a Harrisburg Tax Fraud Attorney Can Help

For a prosecutor to secure a conviction, they must prove that your actions were willful and deliberate. A defense strategy often relies on demonstrating that this burden of proof has not been met. Just as a Harrisburg DUI attorney would fight to prove a lack of impairment or procedural error in a traffic case, your tax defense team will work to show the judge and jury that any discrepancies were due to a misunderstanding of complex laws or a simple calculation error, rather than criminal intent.

Facing fraud charges means going up against determined prosecutors and strict federal laws. At Logue Law Group, our top-rated criminal defense team will walk you through every option available. We are dedicated to achieving the most favorable result for your specific situation.

To arrange a free initial consultation with a skilled Harrisburg federal criminal lawyer, please contact us online or call 412-387-6901 today.