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Tax Fraud and Charges

tax-fraud-1-150x120What exactly is tax fraud? Although the need to file a tax return is referred to as “voluntary compliance” – individuals must know the laws and must file when required to do so. Tax Fraud occurs when individuals working and earning income knowingly and intentionally fail to file their income tax return or falsify information on a tax return.

Failing to state the correct amount of earned income, overstating deductions and exemptions and falsifying documents are all possible elements of tax fraud and are punishable in both criminal and civil jurisdictions.

The process of concealing or transferring income and reporting personal expenses as business expenses are also examples of tax fraud and are actual violations of the law.

Tax Crimes and IRS Charges

Criminal Investigations can charge individuals with a number of crimes, all of which fall into four major crime categories:

  • Legal Source Tax Crimes
  • Illegal Source Financial Crimes
  • Narcotics-Related Financial Crimes
  • Counterterrorism Financing

Many of the crimes within the jurisdiction of CI have criminal and civil liabilities attached. Crimes that individuals can be charged with include (but are not limited to):

  • Tax Evasion
  • Attempt to Defeat Tax
  • Tax Evasion Avoidance/li>
  • Additional Tax Due
  • Willful Failure to Pay
  • Willful Failure to Keep Records
  • Fraudulent Statement to Employer, etc.

Madoff Sons May Face Charges

(source: WPTV) Federal authorities will charge at least two employees from disgraced financier Bernard Madoff’s former firm in the coming weeks — and Madoff’s brother and two sons could be next, two people familiar with the probe into Madoff’s financial fraud told The Associated Press.

Madoff’s brother, Peter, and sons Andrew and Mark — executives in the Madoff firm’s legitimate market-making and proprietary-trading business — are likely to face tax fraud charges later this year, but may escape more serious securities fraud charges if authorities fail to come up with solid evidence they knowingly participated in the massive fraud, the people said.

The people, who asked not to be identified because the investigation hasn’t been completed, declined to name the two employees or specify possible charges.

For a complete story, please visit WPTV website.

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