Understanding tax fraud charge and its penalties

Tax fraud is a type of a white-collar crime where a person is being sought by the Internal Revenue Service (IRS) due to allegations that he or she is not honest in reporting their tax dues. A lot of families in the U.S. have to deal with hefty financial loss when their loved ones got in trouble with the federal government.

Kohler Hart Powell, SC defines tax fraud as a means of paying lesser tax to the government by intentionally falsify their finances. The mere thought of being sought by the IRS after being suspected of failing to report all your taxes can be stressful and frightening. A thorough investigation is usually done by the IRS when they believe that a certain individual or a business outfit is dishonest with their taxes. The IRS often tracks down suspected tax cheaters with the help of the Federal Bureau of Investigations (FBI) and with the U.S. Secret Service. Acts of falsifying accounting entries, getting tax deductions that are not yours and failure to report income are considered samples of tax fraud according to Wisconsin fraud attorneys.

Any person found guilty of tax fraud may be order to pay fine of nearly $250,000 by the IRS and an imprisonment not longer than five (5) years. On the other hand, bigger companies or corporations may face a tougher fine of up to $500,000. The IRS imposes tougher penalties when they found out that tax cheaters operate as a group. In the fiscal year 2015, a lot of people nationwide have been sentenced of tax fraud. In Madison alone, a woman was sentenced to 1 year of imprisonment in June after pleading guilty to tax fraud. Also in June, a company owner in Baton Rouge was ordered to pay fine worth $1,217,657 and was sentenced to 135 months of imprisonment for duping another company.

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