Careful Tax Preparation Instrumental in Avoiding Fraud Investigations
Tax season is upon us, and with anxious taxpayers eyeing the April 15 deadline, it is important to execute great care in the preparation of tax forms so as to avoid arousing suspicion from the IRS criminal investigation division regarding tax evasion.
The following is a list of some of the criminal activities in violation of the tax law:
- Deliberately underreporting or omitting income
- Overstating the amount of deductions
- Keeping two sets of books
- Making false entries in books and records
- Claiming personal expenses as business expenses
- Claiming false deductions
- Hiding or transferring assets or income
As a taxpayer, you are responsible for all entries made on your tax returns, regardless of whether the paperwork is prepared by you or a professional tax preparer. Accordingly, select your tax preparer (if any) wisely, never sign blank tax forms and carefully review your returns before submitting them. If you make an honest mistake on your tax returns, you usually will not be punished. For the most part, the tax law is designed to address willful misconduct.
The IRS has created the Criminal Investigation Division to research and correct improper tax filing. The U.S. Tax Code § 26 provides that violations of tax law carry penalties of up to five years in prison with fines up to $250,000 for individuals and $500,000 for corporations.
The most important thing to remember is to be completely honest when preparing your tax returns. However, in the event that you find yourself subject to an IRS or other criminal investigation for general tax fraud, it is vital that you contact a Los Angeles white collar criminal defense attorney. At the Law Offices of Lawrence Wolf, our experienced criminal defense attorneys can advise you regarding relevant tax law and ensure that you are dealt with fairly and expeditiously by investigators. Call (866) 390-7373 for a free consultation today.
Source: http://www.irs.gov/compliance/enforcement/article/0,,id=130619,00.html
