Large Firm Skills
With Small Firm Service

What are some examples of tax fraud?

On Behalf of | Apr 11, 2019 | Tax Controversies |

When individual sin New York and elsewhere get a job, he or she is likely to owe taxes. This can be overwhelming for some, as one is not always prepared to pay what they owe come tax time. Thus, some individuals take steps to avoid having to owe so much. While there are legal ways to reduce tax liabilities, if an individual does not do this legally, this could result in a tax fraud charge.

What are some examples of tax fraud? When looking at infamous cases, there are some well known examples of tax fraud cases that illustrate how these charges occurred and what penalties resulted. Take Walter Anderson, for example. This entrepreneur was convicted of the largest tax evasion scam in U.S. history. He evaded more than $200 million in taxes. He was sentenced to nine year in prison.

Another well known case involved the Grammy award winning rapper Lil Wayne. The Rapper had an IRS lien against him $12 million in back taxes for two year plus penalties. Actor Nicolas Cage, too, was charged for failing to pay; however, he owed his failure to pay $6 million in taxes to his management team. He later sued them for fraud and negligence. Some are not aware that the famous Chicago gangster Al Capone was brought down by a tax scandal. HE received a 11-year sentence for failing to pay $215,000 in taxes.

Tax fraud charges and other tax controversies could happen to anyone. Because the penalties associated with it can be serious, it is important that one consider their options. Whether it is fighting against them or reaching a settlement, it is important to understand one’s rights in these matters.