Dallas Tax Fraud Defense Attorneys

tax fraud

The Internal Revenue Service (IRS) investigates all types of tax errors, including innocent mistakes and tax returns that may be intentionally fraudulent. As part of its investigation, the IRS looks for a wide range of possible tax-related offenses, including everything from failure to file taxes to falsifying or omitting information.

If you are under investigation, or if you have been charged with tax fraud, it can be a stressful and frightening time, with the possibility of hefty fines, prison, and many other consequences on your mind. That is why it is crucial to get help from an experienced Dallas IRS tax fraud lawyer who will know how to protect your rights and defend you.

With more than 60 years of combined experience as criminal defense attorneys, including numerous trials in federal courts, Broden & Mickelsen, LLP can help you to get through this tough time.

To discuss your case and learn more about how we can assist in your tax fraud defense, call or reach us online today. Our initial consultations are free and confidential.

What Is Considered Tax Fraud?

Tax fraud occurs when a taxpayer fails to provide accurate and complete information to the IRS with a deceptive intent to minimize their tax liability. Tax fraud may include falsifying or underreporting income or overstating deductions.

When the IRS performs an investigation or conducts an audit, it is not necessarily seeking to incarcerate someone for the offense. The IRS understands that honest mistakes happen and, in some cases, a lack of financial resources to pay a tax debt lies behind the discrepancies they uncover.

When falsifying a tax return creates a situation where the taxpayer owes a relatively small amount of money to the IRS, the person will typically be given the opportunity to rectify the situation and be required to pay additional fines.

Simply failing to file a return can result in one year of jail time for each tax year that a return wasn’t filed. However, the IRS is more likely to work with you to put together a payment plan to settle your tax debt in this situation.

When you work with Broden & Mickelsen, LLP, we will thoroughly review the charges against you and explain the government’s evidence and all of your possible defenses.

Common Types of Tax Fraud Charges We Defend Against

The federal government investigates and prosecutes many types of tax fraud offenses. It helps to work with lawyers who have represented clients facing tax fraud charges in federal courts in Texas and several other states. We know how to protect our clients’ rights, find flaws in the government’s case, and pursue the best possible outcome.

Some of the most common types of tax fraud that we defend against on behalf of our clients at Broden & Mickelsen, LLP include:

Tax evasion involves the deliberate underpayment of taxes, including failure to pay altogether. Tax evasion might include transferring or hiding assets for the purpose of having a lower tax liability.

Business entities, too, can face liability for tax evasion. Claiming personal expenses as business expenses, failing to report business income, and overstating deductions are commonly prosecuted forms of business tax evasion.

A person must report all income to the IRS on their annual tax returns. An unexplained increase in net worth, excessive spending, or mysterious deposits in a bank account can all be red flags.

An individual can face a 20 percent penalty or possibly criminal charges for falsely reporting a tax deduction or for negligently or intentionally falsifying receipts to avoid paying higher taxes.

The IRS has ramped up efforts to catch taxpayers participating in offshore tax-avoidance schemes, which can lead to crimes charges, fines, and restitution.

Under the Bank Secrecy Act, banks in Dallas and throughout the country must report to the IRS any cash deposits exceeding $10,000. Individuals and businesses who receive cash payments above that figure must also report it.

The federal government can pursue criminal charges against employers who withhold employment taxes but fail to turn over those funds to the IRS. Employers can also face criminal liability if they misclassify employees as independent contractors or try to avoid tax liability by paying employees in cash for that purpose.

Money laundering occurs when a person tries to hide an illegal source of income – or “dirty” money – by “cleaning” it through a series of transfers and transactions. The government takes money laundering seriously due to its potential ties to terrorism and drug trafficking.

This type of fraud occurs when someone takes another person’s personal information to claim benefits or file a fraudulent tax return.