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Accusations of a tax-related crime, like fraud, can cause panic

On Behalf of | Jul 6, 2020 | Criminal/Civil Tax Litigation |

Any type of criminal accusation can have lasting effects on a person’s life. If a New York resident is accused of a tax-related crime, the situation can be immensely complicated. Unfortunately, it can be difficult to understand exactly where one went wrong when facing such charges, so understanding tax fraud may be important to someone facing such allegations.

When the Internal Revenue Service suspects someone of tax fraud, it generally means that the agency believes someone intentionally provided false information or omitted necessary information to avoid paying taxes or for other financial benefits. These missteps could include not reporting the entirety of earned income, changing information in order to claim deductions, not paying tax debt or not filing a tax return at all. Of course, other actions could potentially raise a red flag for fraud as well.

If someone is convicted of tax fraud, it is possible to face jail time, fines, interest on unpaid taxes and much more. Understandably, no one wants to end up facing fraud charges for errors made on a tax return. Still, it is important to remember that the IRS can make mistakes as well, and even if a taxpayer stands accused of fraud, it does not automatically mean that he or she is guilty.

It can be easy to feel panicked if the IRS believes that a person has committed a tax-related crime. However, any New York resident accused of tax fraud may want to remain calm and remember that he or she has the right to defend against such allegations. Discussing the charges with knowledgeable tax attorneys experienced in criminal tax litigation may be worthwhile.