A taxpayer that willfully attempts to evade paying income taxes is subject to criminal and civil penalties. The type of fraud will determine the applicable penalty. The following are some examples of possible punishments for specific types of tax fraud. Remember a delinquent taxpayer expat or nonresident, can never be certain if the IRS will not view their actions as beyond negligent but intentional fraud. Therefore, file your past due returns before the IRS finds you first. Filing yourself before being caught is viewed as indicative of no criminal intent.
- Attempt to evade or defeat paying taxes: Upon conviction, the taxpayer is guilty of a felony and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 5 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution.
- Fraud and false statements: Upon conviction, the taxpayer is guilty of a felony and is subject to (1) imprisonment for no more than 3 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution .
- Willful failure to file a return, supply information, or pay tax at the time or times required by law. This includes the failure to pay estimated tax or a final tax, and the failure to make a return, keep records, or supply information. Upon conviction, the taxpayer is guilty of a misdemeanor and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 1 year, (2) a fine of not more than $100,000 for individuals or $200,000 for corporations, or (3) both penalties, plus the cost of prosecution .
Information you give your CPA and tax preparers is not privileged and cannot be protected from the IRS or other law enforcement agencies. When you use a Attorney you get the benefit of “attorney/client” privilege and information you give your attorney is protect from the IRS and law enforcement. If you feel you might have criminal tax problems, best to talk first with an attorney.
Get Legal Help with Your Income Tax Problems avoid these criminal consequences. We are CPAs and attorneys with over 35 years experience with US international, expatriate and nonresident taxation. We can solve your tax problems before it becomes necessary to hire a criminal attorney. Email us at ddnelson@gmail.com and visit our website at www.taxmeless.com.