What to Expect When Facing Tax Fraud Charges and How an Attorney Can Help

Did you know that the median losses from tax fraud offenses in 2024 were $358,827? This is according to the United States Sentencing Commission (USSC). This represents a five-year high compared to 2019, when the median losses were at $296,429.

Tax fraud, which includes falsifying or omitting information on tax returns, failing to report income, or claiming false deductions, is considered a serious offense by government authorities. According to a USSC report, men accounted for 70.3% of those sentenced for tax fraud offenses. 

If you face tax fraud charges, it’s important to understand your rights and the specifics of your case. Tax fraud lawyer Matthew G. Borgula says an experienced lawyer will be able to address the complexities of your case and fight for your rights. 

This article will discuss the benefits of hiring a tax fraud lawyer in dealing with tax evasion charges. 

Understanding Tax Fraud Charges

The Internal Revenue Service (IRS) treats tax fraud allegations seriously. The potential penalties and punishments range from large fines to imprisonment. 

A tax fraud charge will prompt an investigation to collect documentation and witness statements. 

The government will be responsible for proving that you are guilty of tax fraud. When the government presents their arguments, it is important to have a prepared counter-response to protect yourself and your rights. 

Common Defenses Against Tax Fraud Allegations

A tax fraud attorney may use a variety of legal defenses for tax fraud allegations. One of the most commonly used defenses is proving the lack of intent.

If a tax professional advised you, you may argue that you acted in good faith. You can allege negligence instead of fraud if you can show that what you did was simply an honest mistake. 

A challenge can be raised as to the validity of the evidence against you, for if the prosecution should fail to prove beyond a reasonable doubt their case against you, then they would fail.

The Role of an Attorney in Tax Fraud Cases

Your lawyer will be your primary legal representative in a tax fraud case. 

Tax fraud lawyers are able to negotiate with the prosecution to reach an amicable resolution through a plea bargain.

As your representative in court, your lawyer is in charge of presenting your defense before the judge and the opposing party. 

The Legal Process for Tax Fraud Cases

After being accused of tax evasion, you will likely receive a letter from the IRS or another entity requesting that you respond to allegations. After that, detectives will question witnesses and gather evidence against you. Gather evidence and documentation to support your case.

Your attorney may begin plea negotiations after charges are formalized. Both parties have the opportunity to present evidence and bolster their claims if the case proceeds to trial. A skilled attorney will guide you throughout the legal proceedings. 

Potential Consequences of a Tax Fraud Conviction

Tax fraud can have long-term consequences that significantly impact your life. Fines for tax fraud convictions can range from a few thousand to a million dollars, depending on the severity of the fraud. 

Another possible punishment for tax fraud is imprisonment. Prison sentences could be anywhere from a few months to several years. A conviction for tax fraud can damage your reputation and jeopardize your personal and professional relationships.

If the conviction results in the loss of your professional license or certifications, it would limit your job opportunities. The conviction would bring forth additional scrutiny from the IRS and further audits.

A tax fraud charge will subject you to additional scrutiny from the IRS and additional financial audits. 

Given the serious consequences of a tax fraud conviction, it is critical to hire a tax fraud attorney to assist you with the complexities of a tax fraud case.