One of the scariest things in life is to get a threatening letter from the Internal Revenue Service. The federal government knows that the more vague and secretive it is in its letter to you, the more likely you are to be frightened.
One of the most important things an Orange County tax attorney does for you is to make clear to you what the IRS is after, which possible crime you might be charged with, and which steps you should take from that moment on.
If you’ve been contacted, you’re under investigation
The IRS is most likely to charge someone with a tax-related crime. The agency says 72.5 percent of its investigations involve allegations of tax crimes, while 14.7 percent of its investigations are not tax-related. The remaining investigations involve allegations of drug crimes, the IRS says.
Tax crimes can include the following:
- General tax fraud: this category includes activities such as deliberately underreporting or overreporting income, keeping two sets of books, claiming false deductions, claiming personal expenses as business expenses and so on.
- Abusive tax schemes: these crimes many times involve offshore accounts that violate U.S. tax law.
- Refund fraud: this misconduct revolves around the filing of fraudulent tax returns by tax preparers and individuals. It can also include identity theft and multiple tax filings.
Non-tax crimes can include allegations of:
- Public corruption
- Corporate fraud
- Cyber crimes
As part of the federal government, the IRS has virtually unlimited resources. It has tens of thousands of employees at its disposal and a budget of more than $10 billion. If you are being investigated by the IRS, discuss the evidence, law and possible charges against you with an experienced tax attorney who will defend your rights and interests at all times.