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Tax Crimes Archives

When understating income leads to criminal charges

A northern California attorney known for suing businesses for violations of the American With Disabilities Act, became the recent target of a federal indictment on tax fraud charges. The accusations include intentionally understating income from 2012 through 2014. If convicted, he may face with up to $100,000 fine for each count of the indictment as well as three years in prison.

IRS Criminal Investigation snapshot reflects digital shift

The agency overview highlights the amount of data seized during tax fraud and other financial crimes investigations in the last year: 1.76 petabytes. How much is that? It is huge and equivalent to 4,000 digital photos a day over your lifetime. Our brains are estimated to store memory data equivalent to 2.5 petabytes.

A look at history as tax fraud charges again make headlines

One of the most famous tax fraud cases of all time sent Al Capone to prison. Those charges were mostly based on circumstantial evidence, because the famous Chicago gangster only endorsed one check and never had a bank account in his name.

Differences between an “innocent spouse” and an “injured spouse”

There are obvious tax benefits for a married couple to file taxes jointly instead of individually. There are credits, deductions and exemptions that only spouses qualify for. Generally, joint tax returns save time, money and effort; it’s a “one and done” proposition, and doesn’t require duplicative effort for each partner to submit his or her own individual return.

Digital currency exemption to be considered

The indication is that the IRS is going after digital currency after a summons of Coinbase for information on member accounts. This is as Bitcoin has continued to climb in value and other digital assets like Ethereum and LiteCoin are becoming more commonly accepted methods of payment.

Ransomware, the dark net and taxes

Federal criminal investigations related to fraud, theft, money laundering and drug sales frequently dovetail with tax evasion. Virtual currency exchanges are in the crosshairs for their role in facilitating criminal conduct.