Tax and IRS Fraud

Every single year, the government loses a massive amount of money due to tax fraud. To tackle this persistent problem, authorities in the Philadelphia area and the IRS have set up specific whistleblower programs. These programs are designed to encourage people to come forward and report any businesses or individuals they suspect are dodging their tax responsibilities.

Common Types of Tax Fraud

There are several schemes that generally fall under the umbrella of tax fraud. These include:

• Not paying sales taxes that are legally required.
• Falsely claiming tax credits you aren’t eligible for.
• Hiding income or failing to report it, while simultaneously exaggerating your expenses or deductions.
• Paying employees “under the table” or incorrectly classifying them to avoid taxes.
• Setting up or participating in sham tax shelters.
• Stashing undeclared income in offshore bank accounts.

If you find yourself being investigated for tax fraud, the situation can quickly feel suffocating. It’s not just about federal prosecutors and IRS agents looking at your tax forms; they might start grilling you about your personal financial habits. This is the exact moment when you need to bring in a skilled Philadelphia federal crimes lawyer to help navigate the situation. The team at Logue Law Group has a profound understanding of federal regulations and is prepared to defend your rights against aggressive federal authorities. 

What is Federal Tax Fraud?

According to federal law, engaging in any of the following activities is considered a crime:

• Submitting income tax returns that are false or fraudulent.
• Handing over documents that are inaccurate or forged.
• Failing to file a complete tax return.
• Intentionally avoiding the payment of taxes owed to the federal government.
• Failing to collect necessary employment taxes.
• Taking part in money laundering schemes.

A major issue many people face is that the government often interprets simple, honest mistakes on tax forms as intentional fraud. When an audit happens, IRS personnel examine every single line item, hunting for signs of deliberate wrongdoing. Because the line between an error and a crime can be thin, it is vital to seek guidance from a knowledgeable Philadelphia federal attorney for the best possible support.

Unfortunately, innocent errors or simple negligence can sometimes be misconstrued as criminal activity. Auditors are primarily looking for:

• Efforts to conceal assets.
• Efforts to report less income than you actually earned.
• A lack of cooperation during investigations linked to illegal activities run by the IRS.

The most effective way to handle this scrutiny is to secure legal representation immediately.

Usually, if the IRS audits you, their main goal is to get back any unpaid taxes, plus interest and penalties. However, if they start to suspect fraud during that process, the situation becomes much more dangerous. You could be looking at harsh penalties or even a criminal trial.

If you reside in the Philadelphia area, consulting with a Philadelphia federal crimes lawyer is essential. Having this legal backing ensures your rights are safeguarded at every step. Additionally, if you are being investigated for a different federal crime, investigators will often pull your tax returns to look for inconsistencies. They specifically look for spending habits that far exceed your reported income, using this as evidence of illegal earnings. These warning signs can easily spiral into tax fraud charges connected to other criminal conduct.

Penalties for Tax or IRS Fraud

If you are found guilty of tax fraud, the consequences are life-altering. You could face:

• Fines reaching up to $100,000 for individuals.
• Fines as high as $500,000 for corporations.
• Prison sentences in a federal penitentiary lasting up to five years.

On top of these punishments, you would likely be forced to pay the prosecution’s costs for every tax violation. This often results in a total debt that is significantly higher than the taxes you originally owed.

How a Philadelphia Tax Fraud Attorney Can Assist You

To secure a conviction for tax fraud, prosecutors have to prove that you violated the law willfully and with specific intent. An experienced Philadelphia federal attorney will work tirelessly to stop them from meeting this high burden of proof. Your defense team will work to present evidence showing that any discrepancies were caused by a misunderstanding of complex tax codes or accidental calculation errors, rather than an intentional plan to break the law.

Facing tax fraud charges means going up against highly trained prosecutors and strict federal statutes. The legal team at Logue Law Group knows how to handle these high-stakes battles. Philadelphia federal crimes lawyer will guide you through every option available to you, building the most robust defense possible for your specific circumstances.

Schedule a Free Consultation

If you are in Pennsylvania and are staring down the barrel of potential tax fraud charges, getting expert legal advice is your first and most important line of defense. Our Philadelphia federal crimes lawyer at Logue Law Group is here to assist you.Contact us online or call 844.PITT.DUI today to book a free initial consultation. We are  Philadelphia federal attorneys ready to stand in your corner and fight for your future.