The beginning of the year means that people across the country are getting ready to file their income taxes. Most people understand how important it is to ensure that everything is reported correctly. Some people, however, take chances they shouldn’t, either because they’re unprepared for a large tax bill or out of a desire to protect their hard-earned income. Tax fraud, however, is a serious criminal matter that can occur when incorrect information is reported on these federal forms.
Around 75% of all income tax fraud cases are committed by individuals and not corporations, so it is imperative that anyone filing takes the time to review facts. You should remember that just because there is something inaccurate on the tax return doesn’t mean that you’re going to be accused of tax fraud.
In order for tax fraud to occur, the error on the tax documents must be intentional. You can’t accidentally commit tax fraud. Failing to file the form or pay the true amount of taxes due falls under this category. Typically, the Internal Revenue Service is only going to pursue a tax fraud charge if there is evidence that the issue was willful.
One of the first things that occur when there is something amiss in a tax return is that it will be reviewed. The government’s auditors are well versed in spotting signs that point to tax fraud. If you’re accused of tax fraud, you should get to work on your defense immediately. The government has ample resources to investigate and prosecute these cases, so staying a step ahead can be complex. Remember, working with someone familiar with these cases is beneficial so you know you’re being given appropriate options.