Knowingly not filing your taxes, providing false information, and other tax crimes can have serious consequences for taxpayers. While some penalties may come in the form of fines, some punishments can be as severe as prison time.
Take a look at five tax crimes and their penalties and learn why you need a tax attorney to represent you.
Key Insights We Will Discuss
- Consequences of filing a fraudulent return
- Tax evasion charges
- Penalties for not filing your taxes
- Charges for knowingly not paying your taxes
- Penalties for willingly not disclosing offshore bank accounts
Executive Summary
- Tax crimes like filing a fraudulent return or tax evasion are serious crimes that can come with jail time and fines.
- Crimes like failing to file a return, failing to pay taxes, and not disclosing overseas accounts are misdemeanors that can result in jail time and fines.
- A tax attorney can represent you in negotiations with the IRS and try to reduce penalties.
- Contact Ayar Law to get free, no-obligation law advice at 800.571.7175.
Filing a Fraudulent Tax Return
If you knowingly submit a fraudulent tax return – or one with known errors – you could be facing felony charges. The penalties can include potential jail time and up to $100,000 in fines. If you are facing these charges you should hire a criminal tax attorney to have him or her represent you in negotiations with the IRS to try to get your penalty reduced.
Tax Evasion
Tax evasion is a serious tax-related crime. If you knowingly used illegal means to conceal or misrepresent financial information to evade tax laws or avoid paying taxes, you could face serious penalties. These can include jail time and fines up to $100,000. A tax attorney can help represent you in negotiations with the IRS and try to get your penalties reduced.
Failing to File a Tax Return
Not filing a tax return is a misdemeanor that typically comes with civil tax penalties instead of criminal. You could potentially face jail time and could pay up to $25,000 in fines for each year you didn’t file your taxes. A tax attorney can help you follow procedures for how to file your late return and help you seek a reduced penalty.
Willfully Failing to Pay Estimated Taxes
Not paying the estimated taxes you owe can have consequences beyond your credit score. This can result in a misdemeanor and could result in jail time and fines. Hire a tax attorney to help get a lessened penalty.
Knowingly Fail to Disclose Offshore Bank Accounts
If you fail to disclose foreign accounts or assets to the IRS, you can face hefty fines per year that you didn’t disclose the accounts. This can include a large fine and 50 percent of the account balance at the time of the violation. An FBAR lawyer can help you determine how to get the penalties reduced.
Contact a Tax Attorney
If you are being charged with a tax-related crime by the IRS, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from a tax attorney.
