Tax Fraud

The United States government uses the term "voluntary compliance" to describe every citizen's responsibility to fill out a tax return when required, and for paying the correct amount of tax. Very often individuals can make mistakes, and in some cases; intentionally attempt to evade, or take advantage of their legal responsibility by providing fraudulent information. This is what is called "Tax Fraud".

Although there are different types of tax fraud, the most common is when an individual or business entity intentionally falsifies information on a tax return in order to limit or decrease his or her amount of tax liability. This is done simply by claiming false deductions, disguising personal expenses as business expenses or by deliberately failing to report income.

Types of Tax Fraud

Basically, any information you provide that is not accurate can be interpreted as Tax Fraud, even an honest mistake, that's why it is important to understand exactly what the IRS Criminal Investigation Unit ( CIU ) looks for when tax fraud is suspected. Some of the ways you be charged with tax fraud include:

Knowingly changing your income

Possessing two set of books

Claiming false deductions

Concealing or transferring assets or income

Over reporting the amount of deductions

Using false amounts in books and records

Recording personal expenses as business expenses

Tax Fraud consequences in Rhode Island

The penalties for criminal tax fraud in the state of Rhode Island are very serious, and may result in up to 5 years imprisonment. In addition to jail time, an individual found guilty of tax fraud may even face fines of up to $500,000, including the court costs for each individual tax crime.

Once this process is complete, the IRS CIU will refer the case back to the Examination Division where more accurate tax calculations will be made and a tax fraud penalty will be added to any criminal tax fraud fines.

Have you been charged with Tax Fraud?

Like any criminal conviction, a tax fraud charge can wreak havoc on your record, and can potentially affect virtually every area of your life, making it almost impossible to find employment. This is especially true within specialized fields such as public servitude or politics, where personal character is paramount. If you have recently been arrested in the state of Rhode Island and charged with Tax Fraud, please contact Criminal Defense Attorney John L. Calcagni now at (401) 351-5100 for a free consultation and more information.