Tax Evasion and Tax Fraud Charges – Michigan Defense Attorney

Tax evasion charges

Have you or has someone you know been charged with tax evasion?

Filing your taxes can be a headache. It is frustrating to watch so much of your hard earned income get swept away by federal and state taxes. It might even be tempting to avoid filing your taxes altogether.

However, in the State of Michigan, tax evasion and tax fraud are not crimes you want to mess with. The penalties and repercussions are extreme.

What is Tax Evasion?

When it comes to committing a crime regarding your taxes, they are referred to tax fraud or tax evasion. They typically will fall under two different categories:

  • Crimes related to the filing of the return
  • Crimes related to the failure to file a return.

Income tax evasion is different from tax fraud. Tax evasion happens when a person does not file a tax return when he or she is required to in order for their tax filings to be complete and accurate.

What is Tax Fraud?

Essentially, tax fraud is cheating on a tax return to avoid having to pay the obligation. It can also be known as forgery, falsifying business records, offering a false instrument for filing, grand larceny, and possession of stolen property.

Tax fraud can apply to a company or business, as well as, an individual. These parties are guilty of willfully and intentionally giving false information on a tax return. Some are tempted to do this because it will limit the amount of tax that will be taken or that they are liable for.

Examples of what tax fraud might look like are:

  • Claiming false deductions
  • Claiming personal expenses as business expenses
  • Failing to collect employment taxes
  • Violating employer withholding requirements
  • Not reporting income

Penalties for Tax Fraud and Tax Evasion

When it comes to penalties for tax fraud and for tax evasion, a company or individual can expect to see both civil and criminal penalties. Tax violations are strictly enforced by both the state and federal government. The crime can be both civil and criminal. The Internal Revenue Service can investigate when a person has committed tax fraud.

Depending on the extent of the tax fraud or tax evasion will impact that exact punishment. Often defendants will have to repay what they owe, plus pay a fine and have to serve possible prison time.

Battle Creek Tax Fraud Conspiracy

Back in March of 2016, 34 individuals from Battle Creek were charged with tax fraud conspiracy. They were accused of committing a conspiracy to defraud the IRS through false tax forms. They are thought to have used information obtained in part from patients and employees of Battle Cree Veterans Affairs Medical Center and from inmates of the Michigan Department of corrections. The fraudulent refunds totaled over 22 million between the years of 2007 and 2014. Each individual faces up to $250,000 in fines each, plus up to 10 years in prison if convicted.

Seek Legal Advice for Tax Evasion and Tax Fraud Charges

In conclusion, tax laws are complicated and can be confusing. If you are concerned about your tax situation, or if you or your business is currently under investigation, seek help from an experienced defense attorney that has a proven record in tax evasion charges. Contact The David J. Kramer Law Firm, PLLC today.

248-348-7400 or 586-530-1000