One of the worst things that you can receive in the mail is an envelope from the IRS. While all communications from the IRS aren’t negative, many are. One of the first things that the IRS may do is initiate an audit following the identification of red flags on your tax return. From here, they’ll investigate your finances and tax returns from this year, as well as previous years. In some cases, this may lead to a penalty and increased tax payment. Other times, it may lead to legal charges.
What is Tax Fraud?
Tax fraud is a white-collar crime that involves the intentional action of misrepresenting information on your tax returns in an attempt to pay less. The IRS refers to tax fraud as any person who deliberately tries to defeat or evade tax payments.
A few examples of tax fraud may include:
- Hiding assets
- Not filing taxes on purpose
- Underreporting your income
- Misrepresenting your income
- Falsely claiming a refund
- Representing personal costs as business expenses
- Underreporting income or sales
- Not paying your state taxes
- Inputting inaccurate information in a tax return
- Changing business accounting methods to falsify profits
These are just a few examples of tax fraud. The biggest factor that sets tax fraud apart from tax avoidance is that a person intentionally falsifies or misrepresents their income or sales to avoid paying taxes, to the detriment of another person or organization, which is usually the IRS.
Potential Penalties for Tax Evasion and Fraud in New Jersey
It’s important to take action as soon as possible if you’re dealing with potential tax evasion or fraud charges in New Jersey. Because the IRS is a federal organization, some tax fraud charges can lead to a felony. This may mean expensive fines and required time in prison. Even if you aren’t charged with a felony, you could be charged with a misdemeanor, which depending on the details of your case, could also mean jail time.
How Does an Attorney Help?
One of the first things you should do following tax fraud charges is to find a lawyer. Cases of tax fraud are handled by the U.S. Attorneys Office and the IRS. The IRS has a team of accountants, lawyers, and financial consultants. They will review your tax return in-depth, including the previous year’s returns.
Navigating tax laws can be difficult, especially on your own. That’s why you need a lawyer who’s familiar with tax fraud.
When Should I Contact a Lawyer?
Preparing your case can take some time, so it’s important to reach out to a lawyer as soon as you learn that you may be charged with tax fraud. A lawyer may be able to help you navigate the audit process, ensuring that you provide the IRS with all the necessary information, while still protecting your rights.
A lawyer can also be beneficial in understanding the auditing process. The IRS review process can be difficult, and reaching a live person is never easy. You deserve to know what you’re being charged with, and what to expect.
Contact an Experienced Evesham Township Criminal Defense Lawyer About Your Tax Fraud Charges in New Jersey
Were you arrested or charged with tax fraud in New Jersey? The consequences of a conviction could be severe, leaving you with a permanent criminal record and possibly even sending you to jail. That is why you need to speak with a qualified criminal defense attorney as soon as possible about your case. The Law Offices of Michele Finizio have successfully represented clients charged with tax fraud in Evesham Township, Mount Laurel, Willingboro, Pemberton, and throughout New Jersey. Call (609) 230-0374 or fill out the online contact form to schedule a consultation with a member of our legal team. We have an office conveniently located at 9 E. Main St, Moorestown, NJ 08057, as well as an office located in Cherry Hill, NJ.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.