Defense Against Tax Fraud Charges. Douglas P. Earl, Esquire is a former tax auditor.
Tough, Aggressive Representation From a Pennsylvania Tax Crimes Attorney — 24-Hour Emergency Consultation
Are you being audited by the Internal Revenue Service? Did you forget to include a portion of your income or deduct a questionable expense in your last tax return? Sometimes, a simple oversight or mistake can cause a big problem.
At the Law Office of Douglas Earl LLC, we provide strong defense for people who are under investigation for income tax fraud. With 29 years of experience on our side, we can help.
Philadelphia Income Tax Evasion Attorney, Member of the Tax Court Since 1999
We are familiar with the unique issues that arise in tax investigations. You can be confident in our ability to protect you.
When you choose Douglas P. Earl, Esquire, you will have a lawyer by your side who understands tax law issues, which can be complicated and confusing. I start each case by conducting a thorough investigation. I will carefully review all records and go over every single detail.
Errors in Income and Deductibles
There are essentially two types of issues that are looked at in tax investigations:
Errors in income reporting
Errors in use of deductibles
Perhaps the IRS believes that you received income that was not reported on your tax returns. Perhaps they think that you fraudulently deducted expenses or overstated depreciation. No matter what they believe, Attorney Douglas P. Earl will work to protect you.
In most tax audits the IRS is only interested in collecting the taxes owed, plus interest along with a few penalties. Perhaps the IRS might impose a negligence penalty or a late filing penalty. However, if during the tax audit the IRS suspects that you have committed tax fraud they can impose a civil tax fraud penalty. The civil tax fraud penalty is equal to 75% of the tax owed, plus interest on the penalty. Worse yet the IRS tax auditor might ask the tax fraud referral specialist to look at your case to see if it should be sent to the IRS Criminal Investigation unit for criminal tax prosecution. The IRS tax fraud referral specialist is usually not a tax lawyer, however, he has experience in tax fraud cases, and will seek the advice of the IRS’ own tax fraud lawyers for help if it seems necessary.
Tax crimes include filing a false tax return, tax evasion, filing false documents, failure to collect employment taxes, failure to pay taxes, and failing to file a tax return. The penalties for criminal tax fraud are very serious. They range up to 5 years in jail, plus fines of up to $500,000, plus the costs of prosecution for each separate tax crime. Once the criminal tax case is completed the IRS Criminal Investigation unit will refer the case back to the IRS Examination Division where the taxes will be assessed, and the IRS can be expected to add on the civil tax fraud penalty, on top of any criminal tax fraud fines.
Clients sometimes ask, “What is the difference between tax fraud, and a simple mistake?” Generally tax fraud or tax evasion involves an intentional wrongdoing. Mere carelessness is not tax fraud. The IRS decides whether tax fraud has been committed by looking for badges of tax fraud. These badges include:
- understatements of income;
- inadequate records;
- failure to file tax returns;
- implausible or inconsistent explanations of behavior;
- concealment of assets;
- failure to cooperate with tax authorities;
- engaging in illegal activities;
- attempting to conceal illegal activities;
- dealing in cash; and
- failure to make estimated tax payments.
If you have any of these tax problems and you are audited by the IRS you may need to engage a tax fraud attorney. Actions you take during the course of a tax audit can turn a run of the mill tax controversy into a tax fraud case. For example, lying or giving evasive answers to IRS investigators, delaying tactics, and other actions designed to mislead IRS agents are all indications fraud.
Attorney Serving Bucks, Montgomery, Chester, Delaware — Fights for You!
Tax investigations can be extremely stressful. If the IRS believes that you committed some form of income tax fraud, you could face serious consequences beyond being required to pay back taxes. Tax evasion is a federal crime — you may face large fines or criminal penalties including prison.
Turn to us to defend you and protect your rights and freedom! Our skilled attorney has 29 years of experience, advocacy and results.
Contact an experienced Philadelphia income tax evasion attorney today. We are available 24 hours a day, 7 days a week to help people in Philadelphia and throughout Pennsylvania.