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Tax Fraud Penalties

What Is Tax Fraud?
If you’ve committed tax fraud, that means that you intentionally and deliberately carried out an act in an attempt to defraud the Internal Revenue Service or “IRS”. Using someone else’s social security number, claiming five kids when you only have two or creating false receipts are just a few examples of what committing tax fraud could be. Like many taxpayers, your next questions might be: “How can the IRS determine between tax fraud and an honest mistake?”. Auditors are not following you around or using some crazy mind-reading devices to get inside your head; but this is a very good question. Auditors have been carefully trained to spot telltale signs of fraud on returns. But, rest assured that auditors are not always on the hunt for tax fraud. They are just keenly aware of the red flags they have been trained to notice. For more information on IRS Audits Click Here.

Tax Fraud Penalties

If the IRS determines that you have committed tax fraud, there are a few penalties you may be adding to your list of problems with the IRS:

  • Attempt to evade or defeat tax: Up to five years imprisonment or up to $250,000 fine for individuals ($500,000 for corporations) or both.
  • Willful failure to collect or pay over tax: Up to five years imprisonment or up to $250,000 fine for individuals ($500,000 for corporations) or both.
  • Willful failure to file return, supply information or pay tax: Up to one year imprisonment or up to $100,000 fine for individuals ($200,000 for corporations) or both.
  • Fraud and false statements: Up to three years imprisonment or up to $250,000 fine for individuals ($500,000 for corporations) or both.
  • Attempt to interfere with administration of Internal Revenue laws: Up to three years imprisonment or up to $250,000 fine for individuals ($500,000 for corporations) or both.
  • Conspiracy to commit offense or defraud the United States of America: Up to five years imprisonment or up to $250,000 fine for individuals ($500,000 for corporations) or both.
  • It’s important to note that many of these penalties come with a felony or misdemeanor on your record as well.

    Get Your Helping Hand Now – Contact a Professional
    If you fear that you could find yourself in a position facing a felony, misdemeanor and one or more of the above fines, you may need to contact a tax attorney. To determine whether you need an Enrolled Agent to help you become compliant with the IRS or if you’ve made decisions that have brought you to a point that you need a tax attorney, contact IRS Tax Relief Now. We have friendly and knowledgeable tax advisors available 24 hours a day seven days a week to sift through the circumstances of your particular situation. If you need a tax attorney, we’ll point you in that direction. If we can manage the issue ourselves and save you some money doing so, we’ll be happy to let you know that as well.

    IRS Tax Relief Now is on your side. Your free consultation is confidential. We understand the pressure of realizing the depths of the consequences you could be facing so we are always available for your convenience. Knowing that you want to be sure you are contacting a reputable tax professional to avoid further complications to your situation, IRS Tax Relief Now has made it easy and convenient to check our rating at the Better Business Bureau. Our home page has a direct link to our A+ rating. While you’re there, take a moment to notice that there have never been any complaints filed against us.

    We’re here for you. We’ll help you put together a solid plan that will allow you take the first steps in the right direction to become compliant with the IRS. Give us a call and sleep better tonight!

    For more information on IRS Tax Penalties please Click Here.

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