Tax fraud is something that is more than just a simple mistake, and for that, one needs to consider the consequences if they face such charges. A person who wilfully commits such a crime or someone who remains avoidant of that can face a lot of trouble.
For example, a person who fails to file for a tax return or makes a mistake in their tax file can also face the charges, and there they need to face the allegations that the IRS registers. For defense, a person needs a criminal tax attorney who can handle these charges and can provide a settlement offer to the client.
In this blog, we will look into the type of activities that can be considered tax fraud and how one can stay compliant and prevent themselves from such actions.
Situation When IRS Considers a Tax Fraud
There are multiple situations where one can find that they are suddenly under the scrutiny of the IRS, and since they are not paying any taxes on some accounts, it is considered tax fraud.
Dealing with tax fraud needs sudden years of preparation, and the IRS starts to provide warnings to the taxpayer. And if the individual doesn’t comply with the guidelines, it can send for an audit notice.
There are broadly two types of tax fraud that are being done, and for the IRS, it’s those individuals who fall under these categories that are considered as the ones who have committed tax fraud.
· Having a Tax Liability
A person who has long overdue taxes is someone who is under the radar of the IRS as they don’t maintain a sustainable account that can be determined as a correct form of paying taxes.
Hence, a person who has a tax liability must provide that information to the IRS to avoid charges and get a part payment option that will help an individual remove the tax debt and come clean completely.
· Avoiding Tax Payments
The next kind of fraud is wilfully defaulting tax payments, and it happens to those individuals who think that only the IRS will send the notice then only they will pay. However, that’s not the case with the tax payments as it can be considered as a serious offender and one can get a serving notice where they will be arrested for tax fraud.
Vigilance of the IRS on Different Types of Tax Fraud
As an individual, one needs to stay aware of those areas where the IRS spends the maximum time for scrutiny. A person might take help from an IRS tax lawyer California or another location, and that can effectively help a person deal with tax fraud charges.
- Failure to make tax payments on time.
- Tax claim that doesn’t match with the profile.
- Following an abusive tax scheme.
- Giving an abusive tax scheme.
- Employment tax fraud.
Under these areas, one must remain vigilant as the IRS spends most of its resources on this area where they can find the highest number of tax offenders and send them audit notices to match the files.
