Skip to Content

June 29, 2022

|

3 common tax fraud mistakes

As Ben Franklin put it, “nothing is certain but death and taxes.” Whether you prepare your own tax filings or go to a professional to do it, most of us are generally honest with the Internal Revenue Service when it comes to paying taxes. However, mistakes can be made – some of which rise to the level of criminal activity.

Wrongs by preparers

Most tax preparers perform their obligations with the due diligence expected of them. However, some tax preparers will file false or fraudulent tax returns. Not only does this harm their clients, but it is also against the law.

However, you as the taxpayer are ultimately on the hook for all information on your tax returns – even if the returns were prepared by someone else. Thus, a wrong committed by a tax preparer could land you in legal hot water.

Fraudulent tax schemes

Fraudulent tax schemes are complex arrangements that make it look as though you, as a taxpayer, are not in charge of your own money. Through the tax scheme, you would receive your funds via a credit card or fictitious loans. Many fraudulent tax schemes involve the use of offshore bank accounts.

Failing to file your tax returns

Simply failing to file your tax returns is a crime, in and of itself. You may believe that filing is voluntary or that the taxes imposed are illegal and ought not to be paid. However, courts will reject such claims. If you fail to file your tax returns, you could face financial penalties.

Stand up for your rights

Most people do not mean to commit a tax crime, but it does happen. If you’re facing tax fraud charges, an attorney experienced in tax-related crimes can help to create a robust defense for your case.

Tax Crimes