If you are notified that you’re being charged with tax fraud by the IRS, you need to take the accusation seriously and act fast to prepare your defense.  According to the IRS, tax fraud includes the purposeful attempt to evade taxes or filing requirements.  These charges can result in severe penalties, including a felony for filing a fraudulent return or providing false financial details to avoid paying taxes.  You can also face lesser misdemeanor charges for not filing taxes or for not keeping sufficient records.  It is critical to hire a tax attorney as soon as you are notified in order to prepare your defense.

Hire a Tax Attorney – Not a Tax Preparer

When building your defense against tax evasion charges, you might consider talking to your tax preparer about your returns and financial information.  However, this can have negative consequences.  A tax preparer does not typically have accountant-client privileges, meaning the IRS could call on them to testify against you.  Instead, you should work with a criminal tax attorney, who does have the attorney-client privilege and cannot be compelled to use the information you provide against you.

Be Careful When Providing Information to the IRS

It is crucial to have your attorney present during any discussions with the IRS and to consult him or her before providing any information to the federal agency.  Providing false information to the IRS or making false statements can make their case against you stronger.  A tax attorney can help you navigate these interactions and requests while ensuring that you do not incriminate yourself.

Consider Paying Your Owed Taxes

To improve your case, your tax attorney may recommend paying any taxes that are assessed.  Being proactive in making these payments can demonstrate to the IRS that you want to make amends.  If you are found innocent after the investigation into the tax fraud charges, and you owe less than what you paid, you will receive a refund from the IRS.