IRS Tax Refund Fraud Lawyer
IRS Tax Refund Fraud Lawyer Defending Clients in IRS and DOJ Investigations
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The Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ) are targeting businesses and individuals suspected of fraudulently claiming refunds on their income tax returns. Tax fraud charges related to fraudulent refunds can expose businesses and individuals to substantial penalties; and, as a result, experienced legal representation is essential in these cases.
Most tax refund investigations involve the IRS Criminal Investigation division (IRS CI). If IRS CI uncovers sufficient evidence to substantiate allegations of tax evasion, tax fraud, or other federal crimes, it can then refer the matter to the DOJ for criminal prosecution. Federal prosecutors can pursue a wide range of charges in these cases—and, along with additional tax liability, convictions can also lead to large fines and lengthy prison sentences.
Allegations of tax refund fraud can take many different forms. When facing scrutiny from the IRS Criminal Investigation division (IRS CI), you need to ensure that you have a clear and comprehensive understanding of the specific allegations at issue. This is essential for building a sound tax fraud defense strategy—and discerning the specific allegations at issue is one of the first ways an experienced tax fraud attorney can help you.
Some examples of common allegations in federal tax refund fraud investigations include:
Underreporting Taxable Income (Submitting a False Tax Return)
Many tax refund fraud investigations involve allegations of underreporting taxable income. If you are being accused of underreporting your taxable income in order to submit fraudulent tax returns and obtain a fraudulent refund, you could be facing serious financial consequences (in addition to the possibility of jail time). However, there are a variety of potential defenses to allegations of submitting a false tax return; and, if you inadvertently made a mistake, you might be liable for back taxes and civil penalties, but you do not deserve to face criminal prosecution.
Claiming False and Fraudulent Deductions
The federal government also routinely targets taxpayers suspected of fraudulently obtaining tax refunds by claiming false and fraudulent deductions. This includes improperly inflating business expense deductions and charitable deductions, among others. When taxpayers’ returns raise red flags, IRS agents will closely scrutinize taxpayers’ claimed deductions—and, if IRS agents have reason to suspect intentional fraud, they will get IRS CI involved.
Falsely Claiming Tax Credits or Exemptions
Falsely claiming tax credits or exemptions can also lead to facing tax fraud charges in cases involving improper refunds. If you are being accused of underpaying the amount of tax owed by improperly claiming a tax credit or exemption, you will want to schedule a free and confidential consultation with an experienced tax fraud lawyer right away.
Sophisticated Tax Evasion Schemes
Tax refund fraud investigations also frequently target taxpayers suspected abuse of federal tax laws in order to perpetrate sophisticated tax evasion schemes. In these cases, federal agents will seek to obtain taxpayers’ financial records and other documentation to prove that they have committed tax evasion, and then federal prosecutors will use this documentation to pursue substantial criminal penalties under federal law.
Diverting Tax Refunds Through Identity Theft
Our tax fraud attorneys also represent individuals accused of diverting tax refunds through identity theft. Identity theft is itself a serious criminal offense under federal law, and criminal investigations targeting the diversion of tax refunds can lead to substantial fines and long-term imprisonment.
Again, these are just examples. When you hire an experienced tax fraud defense lawyer at Oberheiden P.C. to represent you, your lawyer will communicate with federal agents and prosecutors on your behalf to gain a clear picture of the scope of IRS CI’s investigation. Then, with this information in hand, your lawyer will be able to focus on building a strong defense strategy that is custom-tailored to the specific circumstances at hand.
Potential Charges in Federal Tax Refund Fraud Investigations
In all cases, allegations of federal tax refund fraud can lead to a variety of serious criminal charges under federal law. At Oberheiden P.C., we have experience defending clients in cases involving:
Tax Evasion and Tax Fraud
Several provisions of the Internal Revenue Code (IRC) impose criminal penalties for tax evasion and tax fraud. Convictions under these provisions of the IRC can lead to fines, prison time, and other penalties.
Identity Theft
Aggravated identity theft is a federal felony. If you are being accused of engaging in identity theft to divert federal tax refunds, it is imperative that you speak with an experienced tax fraud attorney right away.
Money Laundering
When pursuing charges related to fraudulent refunds, the DOJ will often pursue charges for money laundering and other related financial crimes as well. These crimes also carry steep penalties.
Aiding and Abetting Tax Fraud
Tax professionals and others accused of helping their clients fraudulently obtain tax refunds can face serious federal charges even if they are not named on a taxpayer’s return. Aiding and abetting the submission of false statements to the IRS can lead to fines and prison time.
Attempt and Conspiracy to Claim a Fraudulent Tax Refund
Even when attempts to obtain fraudulent tax refunds are unsuccessful, federal prosecutors can still pursue charges for attempt and conspiracy. In many cases, these charges can carry the same penalties as the underlying offense (i.e., tax evasion or tax fraud).
Defending Against Tax Refund Fraud Charges During an IRS Investigation or In Federal Court
At Oberheiden P.C., our team relies on extensive experience to represent individual and corporate taxpayers in federal tax fraud investigations involving allegations of obtaining fraudulent refunds. This includes prior experience as former federal prosecutors at the DOJ. Whether you are being accused of filing false returns or engaging in refund fraud through other means, as your legal counsel, we will:
- Intervene in the Government’s Investigation – Once you engage our firm to represent you, we will promptly intervene in the government’s investigation and work to determine what evidence federal agents already have in their possession.
- Conduct an Attorney-Client Privileged Risk Assessment – We will also work quickly to assess your risk under the circumstances at hand. We will conduct this assessment under the protection of the attorney-client privilege so that prosecutors cannot use our findings against you.
- Rely on Our Experience in Tax Fraud Cases to Build and Execute a Strategic Defense – Relying on our experience on both sides of federal tax fraud cases, we will build and execute a strategic defense focused on helping you avoid federal charges if possible—and we will be prepared to fight the federal government’s allegations in court if necessary.
Tax Refund Fraud Allegations Can Lead to Charges for Federal Tax Crimes that Carry Serious Consequences
As discussed above, tax refund fraud allegations can lead to serious charges that carry serious consequences. As a result, if you are facing scrutiny from the IRS, IRS CI, or any other federal authority, you cannot afford to take chances. Our tax fraud lawyers are available to provide legal representation on an emergency basis when necessary, and we can work quickly to help you avoid unnecessary consequences by all means available.
FAQs: Criminal Tax Investigations Involving Allegations of Refund Fraud
Do I Need a Tax Fraud Attorney if the IRS is Accusing Me of Refund Fraud?
Tax refund fraud carries serious penalties under federal law. As a result, if you are being accused of obtaining an improper refund, it will be important to engage an experienced federal tax fraud lawyer who can help you make informed decisions and communicate effectively with federal agents and prosecutors on your behalf.
What If I Accidentally Obtained an Improper Tax Refund?
If you accidentally obtained an improper tax refund, you may be liable for back taxes, interest, and civil penalties. However, you could also be at risk of facing criminal charges. To avoid facing criminal charges in federal court, you will need to be able to prove that you made a mistake and that you did not intentionally defraud the federal government.
What If My Tax Advisor or Accountant Advised Me to Claim the Refund?
Even if you relied on your tax advisor or accountant when claiming an improper refund, you can still be held directly responsible for violating the law. As a result, it is important to engage an experienced federal tax fraud lawyer in this scenario as well.
Is Obtaining an Improper Refund a Federal Tax Crime?
Obtaining an improper refund is a federal tax crime when it involves knowing or willful misconduct. In these cases, taxpayers can face serious criminal penalties, and engaging an experienced tax fraud lawyer promptly is the first step toward avoiding unnecessary consequences.
What Are the Penalties for Improperly Obtaining a Federal Tax Refund?
The penalties for improperly obtaining a federal tax refund depend on the specific circumstances (and allegations) involved. While inadvertently claiming an improper refund can trigger repayment liability (plus liability for interest and civil penalties), knowingly or willfully claiming an improper refund can lead to criminal fines and prison time.
Schedule a Free Consultation with a Tax Refund Fraud Lawyer at Oberheiden P.C.
If you need to speak with a lawyer about a federal tax refund fraud investigation, we encourage you to contact us promptly. Call 888-680-1745 or contact us confidentially online to arrange a free consultation at Oberheiden P.C. today.
