What is tax fraud or tax evasion?
Tax crimes include:
- filing a false tax return;
- tax evasion;
- filing false documents;
- failure to collect employment taxes;
- failure to pay taxes, and
- failure to file a tax return.
In short, tax fraud includes not paying taxes that are owed, including failing to file a tax return, filing a false return, not reporting income, or knowingly taking an unauthorized deduction.
Tax evasion is a specific type of tax fraud that occurs when someone takes deliberate steps to misrepresent the amount of taxable income they have received.
Based on our experience representing taxpayers accused of tax fraud, the government is more likely to investigate and prosecute individuals whose acts resemble a pattern of evading taxes rather than those who make a single or short-term, (arguably) honest mistake.
Tax fraud or tax evasion involves intentional wrongdoing. Being careless or negligent is not tax fraud.
What are some “Red Flags”?
Tax authorities decide whether tax fraud has been committed by looking for signs of fraud, including the following “red flags”:
– understatements of income;
– inadequate records;
– failure to file tax returns;
– implausible or inconsistent explanations of behavior;
– concealment of assets;
– failure to cooperate with tax authorities;
– engaging in illegal activities;
– attempting to conceal illegal activities;
– dealing in cash; and
– failure to make estimated tax payments.
Taxes & Cryptocurrency
In addition to the traditional red flags listed above, the explosion of cryptocurrency trading and blockchain technology have and will likely lead to more federal tax investigations and prosecutions of individuals participating in the cryptocurrency markets.
All the “red flags” regarding traditional tax evasion are also pertinent to tax prosecutions where the government alleges that the unreported income was generated by cryptocurrency trading.
How Tim Anderson Law Can Help
Tim Anderson Law has significant experience in dealing with both the civil and criminal divisions of the Internal Revenue Service (IRS). We have been successful in helping our clients avoid having initial civil tax examinations (audits) turn into IRS-Criminal investigations or initial IRS-Criminal investigations turn into criminal charges.
The ideal time to retain a criminal defense attorney is at the beginning of any investigation, and that is particularly true when a civil tax investigation has been or could be referred to an IRS-CI criminal agent.
If your case has been referred to the IRS criminal investigation division, you should contact Tim Anderson Law or another experienced federal criminal defense attorney right away. The earlier we are brought in and can advocate on your behalf, the better your chances of achieving a favorable outcome.
Tim Anderson Law has significant experience in effectively resolving our clients’ cases through creative problem-solving, thorough investigation, and adroit negotiation, all to help our clients make the crucial strategic and tactical decisions necessary to navigate complex federal tax fraud cases.
In our 27 years of practice, we have successfully represented clients accused of tax fraud. And as technology progresses, so do we. We continually monitor the legal and regulatory landscape, including those emerging related to individuals participating in the cryptocurrency market.
Tim Anderson Law is a boutique criminal defense firm focused on using the knowledge we have gained from representing clients who are accused of high-level federal crime and cybercrime, including accusations of using cryptocurrency to perpetuate traditional crimes, such as tax fraud and tax evasion.
In the end, our strategy is simple: Tim Anderson Law puts our clients first and works doggedly on their behalf. Of course, no attorney can guarantee a particular result, but it has been our experience that our work ethic, skill, diligence, and compassion all contribute to maximize our clients’ chances of receiving an excellent outcome.