Raleigh Federal Tax Fraud Lawyer

Raleigh Federal Tax Fraud Lawyer Attorney

Federal tax fraud is a severe financial crime that can come with life-altering repercussions, such as incarceration, debilitating fines, and long-lasting financial effects. If you believe that you or your business is under investigation by the Department of Justice (DOJ) or Internal Revenue Service (IRS), time is of the essence. A skilled Raleigh federal tax fraud lawyer from W. James Payne Law Firm can help you defend your rights and interests and build up a robust legal strategy.

At W. James Payne Law Firm, our experienced federal defense attorney is ready to defend you. Whether you are a corporate executive, employee, or business, we can help you fight back against accusations of fraudulent tax returns, tax evasion, and other types of federal tax crimes. Together, we can leverage tax fraud defense strategies as legal tactics to ensure your rights are safeguarded during investigations, criminal proceedings, and IRS audits.

Understanding Federal Tax Fraud Offenses

26 U.S.C. § 7201 defines federal tax fraud as willfully trying to defeat or evade any tax obligation that has been imposed by the Internal Revenue Code. Individuals and businesses may commonly be facing allegations of tax fraud under the following circumstances:

• Withholding all sources of income.
• Claiming deductions that they are not entitled to as a means to get tax liability reduced.
• Avoiding taxation by hiding assets in foreign bank accounts.
• Failing to submit a tax return to the IRS.
• Providing information that is misleading or false.
• Engaging in payroll tax fraud.
• Utilizing schemes of an illegal nature to minimize taxable income.

The IRS has a division specifically dedicated to criminal investigation, known as the IRS Criminal Investigation Division (IRS-CI). They go after tax fraud cases with force, typically collaborating with other agencies like the FBI and DOJ.

Penalties You Could Be Facing For Federal Tax Fraud in Raleigh

If you are convicted of tax fraud, you could be dealing with extremely severe legal and financial repercussions. Individuals could be facing up to $100,000 in fines, with corporations set to face up to $500,000 in fines. Furthermore, those convicted can be imprisoned for up to 5 years. Accuracy-related penalties may also be imposed, with up to 20% of underpayment being charged and a minimum of either $5,000 or 10% of all the taxes that were owed (whichever is greater).

What’s more, defendants may be required to cover all the costs required by the government to prosecute their case. Beyond this, defendants could be dealing with the required forfeiture of assets and tax liens on bank accounts and real estate, as well as a loss of their professional licenses, such as business ownership, financial advisor, or accountant licenses.

By working with an experienced Raleigh federal tax fraud attorney from our firm, you can optimally navigate settlement negotiations, fight allegations of fraud, and get your charges or penalties minimized.

IRS Investigation Methods for Tax Fraud

The IRS uses many different methods to detect incidences of tax fraud, such as:

• The net worth method. Looking at your financial statements to compare the income you have reported with expenditures related to your lifestyle.
• The cash expenditure method. Examining your spending habits to determine whether you might have not reported any income.
• The bank deposit method. Auditing transactions with your bank to identify if you have any unreported sources of income.

The IRS also has a whistleblower program, which awards people who report tax fraud. Under this program, the whistleblower can receive anywhere from 15 to 30% of the amount recovered for fraud cases that are worth more than $2,000,000.

Understanding the Legal Process for Federal Tax Fraud Cases

Prosecuting federal tax fraud cases will typically involve multiple government agencies, such as the IRS Criminal Investigation Division (IRS-CI), the Department of Justice (DOJ), and the FBI. The IRS carries out regular financial audits and forensic investigations to uncover any evidence for a tax fraud case. The DOJ carries out prosecutions for tax fraud cases in federal court. If the case involves money laundering or organized financial crimes, the FBI may be involved.

Convicting someone of tax fraud involves proving the following elements beyond a reasonable doubt:

• Tax efficiency. This means that the defendant owed taxes that they did not pay.
• Affirmative evasion. This involves the defendant actively attempting to avoid paying taxes.
• Willfulness. This means that the defendant had the intention of committing fraud as opposed to making an honest mistake.

To build up their cases, federal prosecutors will commonly rely on digital banking records, forensic accountants, and whistleblowers.

If you believe you or your company is under investigation for tax fraud, it is recommended to contact a Raleigh tax fraud attorney right away so that you can safeguard your rights and interests.

We Can Help You Defend Against Federal Tax Fraud Charges

The knowledgeable federal criminal defense lawyer at our firm has years of experience successfully defending individuals in the Raleigh area who have been accused of tax fraud in federal courts. Examples of defense strategies we can leverage include:

• Statute of limitations. From the date of the alleged fraudulent tax return, the IRS has six years to bring forward a prosecution. If this period passes, your case could be deemed invalid.
• Lack of sufficient evidence. The DOJ or IRS is required to prove that you intended to defraud beyond a reasonable doubt. If they cannot provide sufficient, accurate evidence showing this, you could get your case dismissed.
• Lack of intent to defraud. The federal government needs to show that you willfully wanted to commit fraud. If you can show that your tax return errors were based on erroneous tax advice or were accidental, you could get your charges dismissed.
• IRS investigation methods. If the IRS violated your Fourth Amendment rights during investigations or carried out an incorrect financial analysis, you may be able to get the associated evidence collected suppressed.
• Good faith belief in tax law compliance. Taxpayers who genuinely believed that what they were doing was legal cannot be convicted of tax fraud. In Cheek v. United States (498 U.S. 192, 203), the Supreme Court affirmed that a valid defense against tax fraud is demonstrating that there was a good faith misunderstanding of tax law.

A Raleigh tax fraud lawyer is eager to help you defend against IRS audits and investigations, negotiate with the IRS if necessary, and challenge your criminal tax charges. Together, we can protect your assets and interests.

FAQs

How Does the IRS Investigate Tax Fraud?

The IRS investigates tax fraud by going through its criminal investigation division. They may leverage tactics such as going through financial records, investigating based on whistleblower program reports, and conducting regular audits or digital tracking to detect fraudulent activities. If they have substantial evidence, they may bring forward charges in federal court. If you believe you’re being investigated for tax fraud by the IRS, it’s crucial to contact an attorney.

What Should I Do If I’m Being Investigated for Tax Fraud?

If you believe you’re being investigated for tax fraud, time is of the essence to consult with a skilled Raleigh federal tax fraud lawyer. Do not speak with law enforcement, investigators, or IRS agents without having legal representation present. You should not discuss the details of your case with people who are not your lawyer, as anything you confide may be used against you as evidence down the line.

Can I Face Criminal Charges for Making a Mistake on My Taxes?

No, if you made an honest mistake on your tax return, this generally does not lead to criminal charges. If the IRS, however, decides that the mistake was made intentionally or is part of a greater pattern of deception, they may decide to pursue charges of fraud against you. A knowledgeable attorney can help you prove that the mistake on your tax return was made out of error and not based on intent.

What Are Common Types of Tax Fraud?

Some common types of tax fraud on the federal level include not fully disclosing all sources of income, filing tax returns that are false, overstating credits or deductions, trying to have money through offshore accounts, failing to file a tax return, and committing tax refund fraud. Many cases of tax fraud can stem from accidents or honest mistakes; therefore, if you believe you’re under investigation, it’s crucial to consult with an experienced attorney.

Can a Lawyer Help Reduce My Penalties for Tax Fraud?

Yes, a lawyer can help you with getting your penalties reduced for tax fraud through various means, such as negotiating with the IRS, looking into your options for making a settlement, and fighting to get your penalties reduced or eliminated through programs such as Offers in Compromise (OIC) or voluntary disclosure. They can also defend your rights and interests, ensuring that agencies investigating your case don’t overstep their bounds.

Defend Your Future and Reputation With a Raleigh Federal Tax Fraud Lawyer & Law Firm

If you or a loved one believes that you’re under investigation for tax fraud or are facing charges on the federal level, you could be dealing with significant penalties, including prison, fines, and the loss of your right to practice your profession. A dedicated Raleigh federal tax fraud lawyer from W. James Payne Law Firm understands all that is at stake and is here to help you fight back. Contact us today to start discussing the details of your case.