Fraud and False Statements

What does the IRS consider fraud and false statements?  You can be deemed guilty of fraud and false statements if the IRS can prove that you:

  • Deliberately and willfully provided false information to a government agency.
  • Deliberately and willfully signed documents that you knew to contain incorrect information in an effort to avoid paying taxes.
  • And deliberately and willfully assisted another party in committing fraud or making false statements to the IRS in an effort to avoid paying taxes.

Notice that the term “willfully” shows up again and again.  The IRS estimates that at least 17% of all taxpayers fail to comply with tax laws, but the noncompliance is generally seen as a result of simple error, lack of knowledge of the Internal Revenue Code, or life circumstances that interfere with timely filings and payments. In other words, the taxpayer is not intentionally attempting to skirt the taxpayer’s responsibilities and duties as a citizen. Generally, noncompliance is not prosecuted if the taxpayer has been unknowingly negligent of tax laws.

According to the IRS, only .0022 percent of taxpayers are convicted of tax crimes annually.  Due to the cost of litigation and the awareness that incarceration usually prohibits collection of due taxes from the noncompliant taxpayer, the IRS prefers to settle issues outside the courtroom.

On the other hand, the IRS tends to prosecute taxpayers it can prove were deliberately negligent in observing tax laws, including those who willingly commit fraud or make false statements to the IRS.  Both are considered felonies under the Internal Revenue Code, and individual offenders can be sentenced up to 5 years in prison and fined up to $250,000.  Culpable corporations can get hit with $500,000 in fines; the responsible parties within the corporation can be individually targeted.  Both individuals and corporations can be assessed stiff penalties and the cost of prosecution.

If you believe you may face criminal prosecution due to fraud or false statements, including perjury, or if a Special Agent has already contacted you about an investigation involving fraud and false statements to the IRS, call our team of professionals at Law Offices of Christy Lee, P.C.

We will:

  • Review the facts and documents relevant to your case.
  • Consult with you to verify the accuracy of the IRS’s file.
  • Strategize the optimum approach to resolving the issues.
  • Intercede on your behalf before the IRS.
  • And appear on your behalf in court.

You owe it to yourself to seek legal counsel during an IRS investigation concerning fraud and false statements.  Law Offices of Christy Lee, P.C., relies on years of experience with tax-related issues when arguing for your rights, and we know the methods the IRS employs in its investigations.  Staff at our tax boutique are thoroughly informed about the Internal Revenue Code, and we will vigorously fight to protect you if the IRS has targeted you in an investigation.