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Prove Innocence From Tax Fraud

Tax fraud is generally defined as the willful misrepresentation or falsification of information on a tax form in order to avoid tax liability. While convictions are relatively rare, the penalties exacted upon anyone convicted are quite severe. Those convicted of tax fraud can be hit with fines of as much as $250,000 and imprisonment for as many as five years. Additionally, of course, the convicted must pay the additional tax owed. For a taxpayer accused of the crime, what steps can and should be taken to prove innocence from tax fraud?

Has the IRS Sought the Fraud Charge in Time?

One of the first issues to consider is whether the IRS has sought the fraud charge in time to make it stick. Depending upon the circumstances, the IRS may have waited too long. For example, with claims of tax evasion, the IRS generally  has six years to bring charges, although the statute of limitations never runs out for civil fraud. Still, it’s pretty rare for the IRS to go back too far, since the problem of obtaining sufficient proof becomes too great, and the burden of proof in fraud cases falls squarely on the IRS.

Gather Your Evidence

While the ultimate burden of proof is on the IRS to show that you’ve committed tax fraud, you don’t want to sit around and wait for the Service to make its case. Instead, you’ll want to gather all available evidence that shows your side of the story and proves innocence from tax fraud.

Show that Your Alleged Fraud Was Only an Inadvertent Error

In order to successfully prosecute a fraud charge, the IRS must prove that your misrepresentation or falsification was intentional. You can defend by showing that instead, any such action (or omission) on your part was not deliberate, but rather, unintentional.

Don’t Fight the IRS Alone; Get Expert Help!

The way to prove your innocence from tax fraud is actually a one-step process: hire a qualified tax attorney and discuss your situation within the protection of the attorney-client privilege. Recognize that by the time you come to the realization that the IRS is attempting to make out a fraud case against you, it has already gathered substantial evidence. You may be dealing with a revenue agent, but in the background, he or she is being advised by a skilled, fraud referral specialist. Without warning, the case can be transferred to a special agent, who has the power to serve subpoenas, seek out search warrants, and make your life miserable.

Trying to go it alone against the IRS generally will only compound your problems. Someone must determine the probable IRS strategy that will be used against you. You are likely too close to the situation to do that on your own. You need to know the true nature of the problems that you face so that you can build a case that presents your situation in the most favorable light possible.

Mackay, Caswell & Callahan, P.C.: Experienced, Caring Tax Attorneys

The Upstate New York tax attorneys or New York City tax attorneys at Mackay, Caswell & Callahan, P.C. aggressively defend their client’s rights against the IRS. We know how to prove innocence from tax fraud.  We have extensive experience gathering the information and applying the law to help you prove innocence from tax fraud charges. We would welcome the opportunity to discuss the issues with you today. We have more than 30 years of experience in assisting taxpayers with all sorts of tax-related issues, including those related to alleged tax fraud. We have offices in Albany, New York City, Rochester, Syracuse, Utica and Watertown. Don’t delay; we have a New York tax attorney ready to help you with your tax issues.