Do I Need a Tax Fraud Attorney?

 In Law, Tax Law

Taxation laws and regulations are confusing to any layman, which is why you may need a tax fraud attorney. A common confusion arises from the terms tax avoidance and tax evasion. If you are not a tax expert, you may not tell whether tax fraud results from tax avoidance or tax evasion. Besides, tax fraud may arise out of innocent omissions or commissions in your financial statements. However, tax fraud is a serious offense that attracts fines or a jail term if you do not get a favorable ruling.

Difference Between Tax Avoidance and Tax Evasion

There is a thin but distinct line between tax avoidance and tax evasion. Tax avoidance is the act of using legal measures to lower your tax expenses, while tax evasion is using illegal means to reduce your tax obligations. Consequently, tax avoidance is a legal accounting strategy, whereas tax evasion leads to fraud. Tax evasion is, therefore, a crime that is punishable by law.

What is Tax Fraud?

Tax fraud is essentially tax evasion. The two terms, tax evasion and tax fraud, are common in tax claims and sometimes used interchangeably. If accused of tax fraud, you could have evaded tax or failed to file your tax returns. If convicted, you may be liable for a fine of $100,000 or imprisonment of 2-3 years.

So Do I Need a Tax Fraud Attorney?

Tax fraud is either intentional or an innocent mistake. However, you will need a tax fraud attorney to convince the court that you did not intentionally commit commission or omission. A tax attorney will also help you apply the available defense for tax fraud. Unless you understand taxation laws, representing yourself in a tax fraud suit is not advisable.

We Can Help

If you have an impending tax fraud suit, we can help you assess the claims and apply the available defenses for your case. Contact us today at (423) 844-0560 and speak to a tax fraud attorney.