What Is Tax Fraud

Federal Tax Fraud Statute 26 USC § 7201

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Federal Tax Fraud Charges

Tax fraud or more commonly known as tax evasion is a federal offense that is penalized by the law under the provision of 26 USC 7201. The failure to comply with the tax liability is considered to be a separate offense for each year of the violation. The three major elements that must be proven to constitute the offense are the following:

  • The defendant has a substantial income tax deficiency
  • The defendant made an attempt to defeat the tax assessment or trying to evade the payment of his tax liabilities
  • That the fraudulent activity to evade the payment of tax liabilities willfully and with intent

Tax Fraud Investigations

The Internal Revenue Service criminal division is mainly responsible for investigating tax fraud as punishable under 26 USC 7201. They get involved in investigating the offense in violation of the Internal Revenue Code and the Bank Secrecy Act. Their findings are then submitted to the Department of Justice for further prosecution. The Federal Bureau of Investigation may also get involved when the crime is committed in relation to money laundering and is considered to be a white collar crime using a fraudulent scheme to defraud the government. The FBI may also investigate the commission of other offenses that are related to tax fraud, such as the filing of fraudulent tax returns and claims for a tax refund.

Tax Fraud Penalties

The following penalties provided by 26 USC 7201 for tax fraud or tax evasion are in addition to the other penalties that may be imposed by the law for the commission of the offenses.

  • Imprisonment not to exceed 5 years
  • Payment of a fine of not more than $250,000 for an individual offender and not more than $500,000 for corporations
  • The imposition of both imprisonment and the payment of a fine with the cost of the prosecution.

Long-term prison sentence can sometimes be avoided in white collar crimes, such as tax fraud pursuant to 26 USC 7201. Wall Street Prison Consultants specializes in helping federal and state offenders to obtain sentence reductions through programs that can help provide alternative solutions to long term incarceration. Our consultation services employ investigative and research processes to assist inmates and their lawyers in finding the best solution and alternatives available to reduce prison terms of an inmate. Discuss possible solutions to your issues today. Contact Wall Street Prison Consultants at 855-577-476. We’re here to help!