Lynette Byrd
Are you facing tax reporting issues or suspect you’re under scrutiny? Has the IRS contacted you at home or work? Received a Grand Jury subpoena? Are you concerned about yourself or a loved one facing federal theft or tax fraud accusations? If these questions resonate, securing a skilled Tax Fraud Lawyer is crucial. Understanding your situation and the potential risks is the first step towards robust defense.
The U.S. government is intensifying its crackdown on federal white-collar crimes, with tax fraud investigations at the forefront. Daily news cycles highlight arrests and indictments for federal tax fraud. Given the severe penalties, including substantial fines and lengthy prison sentences, prompt and informed legal counsel from a seasoned federal tax fraud attorney is paramount to mitigate worst-case scenarios.
Oberheiden P.C. is composed of former federal prosecutors and accomplished federal defense attorneys. Our dedicated tax fraud lawyers specialize in navigating complexities with the IRS, IRS Criminal Investigation Unit (IRS CI), and the Department of Justice (DOJ). Many of our attorneys bring invaluable experience as former DOJ prosecutors, having collaborated closely with IRS and other federal law enforcement agencies. This insider perspective is often critical in formulating effective defense strategies and striving for outcomes that avoid criminal charges for our clients. For a confidential and complimentary consultation with a knowledgeable tax fraud attorney at Oberheiden P.C., reach out to us today.
Is Criminal Tax Fraud on Your Horizon? Understanding Your Risk
Underpaying taxes isn’t just an oversight; it’s a federal offense categorized as tax fraud, carrying both civil and criminal repercussions. If you are currently under investigation or facing charges for tax fraud under 26 U.S.C. Section 7201, engaging a federal tax fraud defense attorney without delay is essential.
Every U.S. citizen and resident is legally obligated to accurately report and pay federal income taxes. Businesses face similar mandates, encompassing payroll taxes (like Social Security) and all other taxes stipulated by the Internal Revenue Code. While unintentional errors typically lead to civil actions and IRS audits, allegations of deliberate underpayment or nonpayment escalate matters to criminal tax investigations, potentially leading to severe criminal charges and penalties.
Why Entrust Your Defense to Oberheiden P.C.?
- Senior Attorney Handling: We prioritize experience; your case will be managed directly by a senior attorney, ensuring consistent communication and expert oversight.
- Government Insight: Our team includes former federal prosecutors, giving us an unmatched understanding of government strategies and allowing us to preemptively build robust defenses.
- Investigative Expertise: Former FBI, IRS, DEA, OIG, and Secret Service agents on our team bring specialized skills in espionage, business investigations, and cyber forensics, uncovering crucial details for your defense.
- Proven Success: Our track record speaks volumes, with over 2,000 cases won, reflecting our deep experience and commitment to achieving favorable outcomes for our clients.
We encourage you to compare our team’s credentials, case results, and collective experience against any other firm, local or national. Our extensive history in tax fraud defense means we’ve encountered and countered virtually every government tactic, giving you a significant advantage.
If your reputation, career, freedom, or financial stability is at stake, contact us now for a free consultation. We are committed to providing clarity on your options and charting the optimal path forward.
Call us now for a confidential discussion about your situation: 888-680-1745
Dr. Nick Oberheiden
Federal Tax Fraud: Understanding the Penalties
Tax fraud penalties can impact both individuals and corporations. Criminal convictions can lead to substantial fines, significant prison terms in federal institutions, and orders to cover government prosecution costs. Civil penalties also involve financial penalties and may include covering the government’s legal expenses.
- Tax Evasion: Conviction can result in up to five years imprisonment, fines reaching $100,000 for individuals and $500,000 for corporations, plus covering prosecution costs.
- False Statements on Tax Returns: Penalties include up to three years in prison, fines up to $100,000 for individuals and $500,000 for corporations, alongside prosecution cost reimbursement.
- Aiding or Assisting in False Tax Document Preparation: Those involved face up to three years imprisonment, fines up to $100,000 for individuals and $500,000 for corporations, and responsibility for prosecution expenses.
- Conspiracy: In cases involving felony tax crimes, conspiracy convictions carry penalties up to five years in prison and/or significant criminal fines, potentially with additional penalties for the underlying tax crime.
IRS Tax Fraud Investigation: Are You Under Scrutiny?
The IRS Criminal Investigation (IRS CI) unit is tasked with criminal tax fraud investigations within the federal law enforcement framework. Their mission is to “serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.”
Tax fraud under 26 U.S.C. Section 7201 is a key enforcement priority for IRS CI, focusing on:
“Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”
“Evading or defeating” tax essentially means underpaying or avoiding tax obligations. If you’re targeted in a federal tax fraud investigation, your tax fraud lawyer will meticulously examine your tax filings and financial records to ascertain your tax compliance. Demonstrating full tax payment should resolve the inquiry. However, if underpayments are found, proving the lack of “willful” intent is vital to avert criminal liability.
“Willfully” attempting tax evasion involves a deliberate act. Government Proposed Jury Instruction Number 26.7201-5 clarifies this, stating:
“A person may not be convicted of federal tax [fraud] on the basis of a willful omission alone; he/she also must have undertaken an affirmative act of evasion. . . . [Defendant] acted ‘willfully’ if the law imposed a duty on him/her, he/she knew of the duty, and he/she voluntarily and intentionally violated that duty. . . . This is a subjective standard: what did [defendant] honestly believe, not what a reasonable person should have believed. Negligence, even gross negligence, is not enough to meet the ‘willful’ requirement.”
Examples of affirmative acts that can lead to criminal tax fraud charges include:
- Filing significantly false tax returns
- Maintaining dual sets of financial records
- Fabricating invoices or documents
- Failure to keep adequate records
- Destroying financial records
- Hiding assets
- Concealing income sources
- Any conduct aimed at misleading the IRS or hiding income
Unintentional tax underpayment, lacking willful intent, does not constitute criminal tax fraud. However, civil penalties and full tax payment may still apply. When facing a federal tax fraud investigation under 26 U.S.C. Section 7201, a strategic defense is crucial, aiming first to avoid liability entirely and, failing that, to ensure civil rather than criminal resolution.
Expert Legal Team for Your Defense
Dr. Nick Oberheiden
Founder, Experienced Tax Fraud Defense Attorney
Lynette S. Byrd
Partner, Former DOJ Trial Attorney specializing in Tax Fraud
Brian J. Kuester
Former U.S. Attorney, Expertise in Federal Tax Cases
Hon. Kevin McCarthy
Government Consultant, Former Speaker of the U.S. House of Representatives
Mike Pompeo
Of Counsel, Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney, Tax Fraud Litigation Specialist
Linda Julin McNamara
Federal Appeals Attorney, Tax Law Expertise
Jennifer W. Corinis
Litigation Counsel, Focus on Complex Tax Litigation
Roger Bach
Former DOJ Special Agent, White-Collar Crime Investigator
Chris J. Quick
Former FBI & IRS-CI Special Agent, Tax Fraud Investigation Consultant
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG), Government Oversight Expert
Ray Yuen
Former Supervisory Special Agent (FBI), Criminal Investigation Specialist
Facing Federal Tax Fraud Charges? Defense Strategies
If you are formally charged with criminal tax fraud, your defense will hinge on the specifics of the allegations. Individual charges can lead to five years in prison and a $100,000 fine, plus tax liabilities and interest. Corporate charges can result in fines up to $500,000, in addition to taxes and interest owed.
Effective defense strategies require a detailed analysis of your case’s factual and legal landscape. Here are some key defense approaches a tax fraud lawyer might employ:
1. Challenging Evidence of Tax Underpayment
For a tax fraud conviction under 26 U.S.C. Section 7201, prosecutors must first prove tax liability underreporting. If the evidence is insufficient to demonstrate a false return submission, the government’s case weakens, regardless of return accuracy.
2. Disproving Willful Intent in Tax Evasion
The government must prove a “willful” intent to evade taxes. If prosecutors lack evidence to convince a jury of your deliberate intent to avoid tax liabilities and knowingly file a false return, a criminal tax fraud conviction is unlikely, even with underpayment.
3. Lack of Evidence for Affirmative Evading Acts
Conviction requires proof of an affirmative act to underpay taxes. The DOJ carries the burden of proof; without evidence of such an act, securing a conviction in federal court becomes challenging.
4. Good Faith Belief in Tax Return Accuracy
A genuine belief that your tax returns were compliant undermines the element of willfulness. Even if this belief is deemed unreasonable in retrospect, a good faith belief at the time of filing negates criminal tax fraud under 26 U.S.C. Section 7201.
5. Constitutional Rights Violations & Evidence Inadmissibility
The legality of evidence collection is critical. Improper raids, seizures, or interrogations by federal agents can lead to evidence being ruled inadmissible, significantly impacting the prosecution’s case. A skilled tax fraud lawyer will scrutinize these procedures.
Understanding Federal Tax Fraud Crimes
Tax Evasion [26 U.S.C. § 7201]: Deliberately underreporting income to evade tax payment constitutes tax evasion. It requires an affirmative act beyond just failing to file. Willfulness involves intentionally violating a known legal duty. Therefore, individuals honestly believing they owe no tax, however unreasonable that belief might be, would not be guilty of tax evasion.
False Statements on Income Tax Returns [26 U.S.C. § 7206(1)]: Knowingly signing and submitting a tax return with materially false statements or omissions, intending to violate a legal duty, is a crime. A material false statement is one that could influence an IRS audit or investigation. Honest mistakes or misunderstandings leading to false statements do not meet the threshold for criminal liability. Reliance on a tax preparer can also serve as a defense.
Aiding or Assisting in False Tax Document Preparation [26 U.S.C. § 7206(2)]: Assisting in preparing a tax return with false statements, knowingly and willfully, is illegal, regardless of the taxpayer’s awareness.
Conspiracy [18 U.S.C. § 371]: Conspiracy involves agreeing with at least one other person to commit a crime, with an overt act furthering the agreement. In tax fraud, it requires awareness of the scheme’s unlawful nature. Unintentional aid is insufficient for conspiracy charges, but detailed knowledge of all aspects of the scheme isn’t necessary to be considered a conspirator.
Choosing the Right Federal Tax Fraud Lawyer
Why Oberheiden P.C. Stands Out for Tax Fraud Defense
Oberheiden P.C. provides nationwide representation for individuals and businesses facing federal tax fraud investigations, grand jury inquiries, and trials. Here are key reasons to choose our tax fraud attorneys:
Confidential Case Evaluation with Our Criminal Tax Attorneys
If you are under IRS CI investigation or facing federal tax fraud charges, immediate action is crucial. For a confidential consultation with former federal prosecutors, call 888-680-1745 or request a free case assessment online now.
Explore More on Tax Fraud Defense
Last Updated:
