What to Do If You Are Accused of Tax Fraud
Tax fraud is a crime that involves intentional wrongdoing when failing to comply with a tax law. If you simply make a mistake when filing your taxes, the IRS may charge you with civil penalties, but they will not pursue any criminal charges. If, however, the IRS believes that you intentionally failed to meet your obligations as a taxpayer, you could face criminal penalties and jail time.

Tax fraud can result in up to 5 years and prison and a $500,000 fine. The IRS does not commonly pursue criminal charges, so if they have singled you out for a criminal tax violation, you should immediately consult with a tax attorney.

What to Do If You Are Accused of Tax Fraud

How to Fight Tax Fraud Penalties
Tax fraud occurs when an individual’s conduct goes beyond negligence and becomes intentional or willful wrongdoing. It has been described as an intentional violation of a known legal duty.

If you want to fight tax fraud penalties, you will have to convince the IRS that they have insufficient evidence to prove that your acts were willful. You may be able to fight the charges against you, or negotiate the amount of penalties owed, but you must consult with a criminal tax attorney before saying anything to the IRS.

Badges of Tax Fraud

Do I Qualify For Innocent Spouse Relief
There are three different types of innocent spouse relief. The IRS offers these defenses to taxpayers who want relief from the joint and several liability that is imposed on married taxpayers who file joint returns.

Traditional Innocent Spouse Relief

To qualify for traditional innocent spouse relief, you must meet all of the following conditions:

How to Negotiate an Installment Plan With The IRS
An IRS installment plan is an agreement to pay your tax debt back over time in monthly payments. When you owe a tax debt to the IRS, they have a number of ways of collecting from you, including levying your bank account or wages, seizing your state tax refund, or seizing your home and selling it at an auction. An installment agreement is one strategy that can be used to halt these collection activities.

Before you consider negotiating an installment plan, you should be aware that there are other options that may be able to reduce your tax debt. If you are unable to pay back your tax debt, you may qualify for an Offer in Compromise. You may also consider using a tax bankruptcy, obtaining innocent spouse relief, or disputing the amounts you owe to the IRS.

All of these strategies can be used to effectively wipe out some or all of your tax debt, and they can also be combined with installment agreements in some cases. Consult with a tax attorney before you commit to a monthly payment plan with the IRS.

How to Get California Income Tax Relief
California tax problems can come as a result of an IRS tax audit, if the IRS sends the result to the California Franchise Tax Board (FTB). The FTB can also initiate its own audit, or you can simply find yourself in a difficult financial situation and be unable to pay your California income tax debt.

The FTB offers a number of ways to get tax relief. If you have a complex tax situation that requires professional assistance, talk to a tax attorney before you agree to any tax relief programs.

Installment Agreements

The IRS Is Not Always Right: How to Fight Back
Dealing with an IRS mistake can be a frustrating experience, but it happens fairly often. There are many different types of error the IRS can make:

  • Wrongful calculation of penalties and interest
  • Wrongful assessment of penalties

Can You Be Liable for Your Spouse’s Tax Debt
Married taxpayers often choose to file joint tax returns because of the higher standard deduction amounts, marginal tax rates thresholds, and other benefits. One aspect of joint filing that taxpayers are sometimes unaware of is that both taxpayers are jointly and severally liable for the taxes due, as well as any penalties or interest that are imposed by the IRS.

Joint and Several Liability for Tax Debt

Joint and several liability means that the IRS can go after either taxpayer (or both) for the full amount of the tax debt. Even if you later divorce, the IRS can go after you for tax debt from previous tax years when you filed a joint return.

What Will an Auditor Look for in a California Sales Tax Audit?
A California sales tax audit  is conducted by the California State Board of Equalization (BOE). The objective of the audit is to determine if you have paid the correct amount of sales taxes.

The main question the auditor is attempting to answer is: Did you report all gross receipts from sales of taxable personable property? Businesses that have cash transactions are often targeted for sales tax audits. You are required to provide records during the audit process.

How an Auditor Looks for Sales Tax Problems

What Are the Potential Penalties for IRS Tax Fraud
The idea of being sent to prison for making a mistake on your tax return may seem ridiculous — and also scary — to the average taxpayer. With so many regulations to follow that even IRS employees can become confused, how can a lay person with no tax expertise be charged criminally for messing up their taxes?

Actually, they cannot be charged criminally if an honest mistake was made. While tax fraud can results in both civil and criminal penalties, there is a higher standard of proof for criminal charges. The IRS must prove criminal tax fraud “beyond a reasonable doubt”, whereas a civl tax fraud penalty can be imposed if there is “clear and convincing evidence”.

The IRS Must Prove You Intended to Commit Tax Fraud