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DC Federal Tax Fraud Cases

People and businesses pay taxes to the government, which includes state and federal taxes. When a person does not pay the taxes they are required to pay, and they make an effort to avoid paying taxes, they are at risk of being charged with tax fraud.

One form of tax fraud is when an individual takes deductions they are not eligible to take to avoid paying their entire tax obligation. Prosecution for tax fraud is not done for minor violations or even significant violations when they are done by mistake. Usually, in DC federal tax fraud cases, there is a pattern of conduct that suggests to the prosecutors that the taxpayer intentionally illegally made efforts to avoid paying taxes. They took deductions they should not have taken or hidden money they did not declare as income. In these cases, the person received the funds but did not pay taxes on that income.

If you are facing charges, consult with a seasoned federal tax fraud lawyer today.

What Might Lead to Federal Tax Fraud Charges

DC federal tax fraud cases may include:

  • Intentionally failing to file an income tax return
  • Falsifying financial affairs to claim tax credits or deductions dishonestly
  • Deliberately not paying a legitimate tax debt
  • Submitting a false tax return
  • Failing to report all income received during the year
  • Using a false Social Security number

Perhaps the individual purposely failed to file an income tax return, or they misrepresented their affairs to claim tax deductions or tax credits they were not eligible to take. For example, an individual has a regular job and files the W2 with their income tax return. However, they have a second job that brings in another income, and they are paid in cash. If they do not declare that income, that is tax fraud on the government because they are getting an income for which they did not pay taxes. In this situation, they could be exposing themselves to a tax fraud prosecution.

Evidence Used in Tax Fraud Cases

DC federal tax fraud cases are a document-intensive type of case. The person’s tax returns are the primary source of evidence, along with other types of financial information, such as bank accounts. Banking documents can be obtained through a grand jury subpoena early in the process if the case is likely to go to criminal court. The government verifies the amount of income the person made and examines the documentation for any deductions they claimed on their tax returns.

What Agencies are Involved in Investigating a Tax Fraud Case in DC?

The IRS and the Department of Justice are frequently involved in investigating a tax fraud case in Washington DC. The investigation may also include other agencies such as state agencies to collect taxes in a state-level prosecution. Sometimes, criminal tax charges are included with other types of crimes like embezzlement. For example, when someone embezzled $300,000 in a year, the federal tax law requires that they declare that as income. If they fail to do so, they can be prosecuted for tax fraud in addition to the embezzlement charges.

Federal Tax Fraud Penalties in DC

The penalties for federal tax fraud charges could include hefty fines, prison time, and the cost of the prosecution.

In federal court, each criminal charge has a statutory maximum. When Congress passes a law, they set a maximum amount of jail time that can be imposed. There are also the federal sentencing guidelines that are not mandatory, but judges follow them about 90 to 95 percent of the time when imposing a sentence. The sentencing guidelines are used to calculate the recommended jail terms for a specific crime. The factors used to calculate the sentence include the defendant’s criminal history, the amount of money taken, the severity of the crime, and the defendant’s acceptance of responsibility.

Individuals facing these penalties should contact a lawyer who is experienced with DC federal tax fraud cases.

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