Phoenix Accounting & Tax Fraud Attorney
Last Modified: February 21, 2017 at 10:21 pm
With all the hype given to mortgage and bank fraud in recent years, tax fraud has slipped off the radar, but is still an ever present goal of the IRS. Multi-million dollar companies frequently engage in risky tax behavior through the setup of various overseas companies. However, many Americans feel that the IRS focuses its efforts on the “small fish” everyday citizens who engaged in tax fraud on a much smaller basis, if at all. If you have been charged with accounting or tax fraud, it is important that you contact an experienced Phoenix tax fraud attorney to find out all options available to you. Being charged with accounting or tax fraud is a frightening situation that can well lead to years in federal prison or astronomical tax penalties.
Accounting and Tax Fraud in Phoenix, AZ
Accounting and tax fraud can be brought either in the state or by federal prosecutors, depending on the form of tax fraud, are federal offenses that can result in years in federal prison and heightened fines depending on the range of the offense.
Tax fraud in Arizona can be accomplished through a number of ways, but federal prosecutors typically go after those who commit the following offenses:
- File a false return
- Failure to file a return
- Tax evasion
- Filing false documents
- Failure to pay taxes
The IRS imposes an array of penalties against taxpayers who commit tax fraud, many which can cost up to 75% of the cost of the tax itself. Criminal charges brought by the federal government are equally serious, ranging from several years in federal prison in addition to fines up to $500,000.
Understanding Tax Fraud
Tax fraud is easily differentiable from mere mistakes. The IRS has certain “red flags” which they look for in beginning a tax fraud case, such as:
- Drastic understatements of income
- Keeping inadequate records
- Failure to file tax returns
- Hiding large assets
- Engaging in illegal activities
- Dealing in cash
- Failure to make estimated tax payments
- Failure to keep adequate records of accounting
Making a simple mistake on your tax returns typically does not lead to a full-blown tax fraud charges against you, although repeated mistakes can lead to this.
Phoenix, AZ Accounting and Tax Fraud Attorney Free Consultation
Dwane Cates has years of experience in defending clients against state and federal tax charges. Tax fraud is frequently tacked on as an additional offense after the federal government has investigated you for a different crime which often involves your finances. Many times, this leads to tax fraud because of your failure to claim undocumented income or your failure to claim large sums of money. Dwane Cates can assist you in navigating the complex state and federal tax laws and can formulate the best defense to your unique case.