While few Danbury, Connecticut, residents are enamored of taxes, all need to pay the taxes that are legally due. Failures to do so can constitute tax crimes, such as tax fraud, which carries financial penalties inclusive of the amount owed and often fines as well.What...
Tax Crimes
What is the difference between tax planning and tax evasion?
According to the IRS, a fine line may separate tax planning from tax evasion. To be fair, the type of planning we’re talking about isn’t just setting up a new filing system to document next year’s deductions. In the eyes of the IRS, tax planning might refer to tax...
Defense tip: negotiate with the IRS before the indictment
A liquor store co-owner recently learned the harsh consequences for federal tax evasion the hard way. The 67-year-old man’s conviction for tax evasion and conspiring to defraud the United States has resulted in a 41-month prison sentence. His sentence also includes an...
Former professor convicted of tax evasion for offshore accounts
A former university professor was recently convicted and sentenced on tax evasion charges. The man will have to serve seven months in federal prison and pay $100 million in fines. Upon his release, he will be supervised for one year.Notably, the court had discretion...
IRS hopes extra screening will reduce fraudulent refund payments
Fraudulent tax returns hurt everyone. To combat this crime, the IRS is forced to devote costly agency resources. State and federal government budgets are deprived. And for the average taxpayer, an additional consequence this year will be delayed tax...
Failing to file returns may result in criminal tax charges
The IRS isn’t the only agency that will go after you on charges of tax evasion or tax fraud. The Connecticut Department of Revenue Service’s website also encourages individuals to report suspected tax fraud. Notably, the IRS also has local field offices, and...
IRS steps up its criminal tax prosecution efforts
Many Americans are familiar with the civil penalties that the Internal Revenue Service can impose for unpaid taxes. However, there are also behaviors that could give rise to criminal liability. To put it simply, an individual could serve time if convicted for filing a...
Business owner faces years in prison over employment tax issue
Employers who fail to withhold and pay employment taxes to the IRS may face more than just an overdue tax debt. In a recent example, the IRS charged a recreational sports facility owner with 16 counts of tax fraud.The owner was responsible for withholding the...
Man to serve prison time over alleged tax fraud
The IRS does not take tax fraud lightly. In a recent example, a federal court judge sentenced a tax professional to two years in prison for that felony offense.Notably, the professional's stiff sentence implicated only a single felony count of aiding and assisting in...
The IRS has an unusually high conviction rate for tax evasion
Section 7201 of the Internal Revenue Code sets out the penalties for the willful attempt to evade or defeat any tax imposed under the I.R.C. The crime is classified as a felony, and a conviction could result in imprisonment up to five years and/or fines up to $250,000...