Tax fraud is a very serious matter to face

On Behalf of | Oct 9, 2018 | White Collar Crimes |

Many things can lead to white collar charges. One of these is tax fraud. Everyone, including business entities, must ensure they file correct income tax returns. When there are errors in a tax return, the Internal Revenue Service is charged with determining what is going on when there are incorrect components to returns or even missing ones.

It is estimated that around 17 percent of taxpayers don’t comply with applicable tax codes each year. The majority of these, around 75 percent, are individual taxpayers instead of corporations. The issue then becomes whether the person committed tax fraud or simply made a mistake.

Making a mistake on your taxes isn’t a form of fraud. In order to be a fraudulent return, you have to willfully make misstatements on the return or not file a return at all. You have to be sure that what you report is fully accurate. You can’t overinflate or underinflate your income at all.

Income tax fraud charges are sometimes the result of an audit. There are many things that might trigger an audit. Some are random, but others occur when there is something suspicious about a return.

Using a false Social Security number, using the incorrect amounts for deductions and exemptions or using a nonexistent dependent to claim earned income credit or other credits are all forms of tax fraud.

Tax fraud is a very serious crime that can lead to time in prison. With this in mind, you can see why it is necessary to determine a defense strategy. Don’t waste any time on this. Instead, get moving on it right away.

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