Call For a Free Consultation




Federal Tax Fraud Violations

Federal Tax Fraud Information

True or False. 75% of all Federal Tax Fraud Violations are committed by corporations. True or False.


A large percentage of tax crime charges result in a guilty verdict. True or false. All violations of the United States Tax Code is fraud.


The answer to each question above is False. Most Federal Tax Fraud violations occur at the hands of individuals. That’s the bad news.


The good news is that although a relatively small percentage of charges become convictions, you do not want to be in the minority that loses.


What is a Federal Tax Fraud Violation?

Federal Income Tax Fraud occurs when a citizen of the United States willfully attempts to defraud the United States Treasury via the Internal Revenue Service (IRS). There are five (5) specific areas which get the attention of auditors of the IRS…

  1. Preparing and filing a false Tax Return
  2. Intentionally failing to report all income
  3. Intentionally failing to file a Tax Return
  4. Making a fraudulent and/or false claim
  5. Intentionally failing to pay taxes

Click here For more information – Related Statutes and Penalties – General Fraud – IRS


What are the Penalties if Convicted of Federal Tax Fraud?

If convicted of Federal Tax Fraud, the penalties are dependent on three basic laws. These deal with felony evasion, making false statements, and failing to file tax returns.


The first is 26 USC 7201. If convicted of 7201 felony charges, that is, tax evasion, the convicted will be facing up to…

  • 5 years imprisonment
  • Fines up to $500,000 Corporations; $250,000 Individuals
  • Both penalties including the cost to Prosecute


Under 26 USC 7206, making false or fraudulent statements carry felony sentences up to

  • 3 Years imprisonment
  • Fines up to $500,000 Corporations; $250,000 Individuals
  • Both penalties including the cost to Prosecute


As per 26 USC 7203, failing to file a tax return willfully, provide the required information, do so in a timely manner, or keep records can result upon conviction of a misdemeanor up to

  • 1 year incarceration
  • Fines up to $200,000 Corporations; $100,000 Individuals
  • Both penalties including the cost of Prosecution


What Are Defenses to a Federal Tax Fraud Violation?

There is a difference between tax fraud and tax evasion. The laws sentencing those the IRS prosecutes were designed largely to more aggressively go after tax evaders.


Evasion as opposed to fraud involves willfully seeking to defraud the Federal Government of tax revenues. Many taxpayers likely commit Tax Fraud unintentionally.

This distinction provides a fertile place to mount a defense. The simple reality is that the IRS doesn’t want to spend any more time chasing evaders than necessary.


If a person has committed Federal Tax Fraud, an experienced Attorney such as Jason A Korner can help you.


Facing a Federal Tax Fraud Charge? Call Criminal Defense Attorney Jason Korner Now!

If you are facing a Federal Tax Fraud Charge, you need to speak to an attorney who understands both the United States Tax Code but also Federal Criminal law. You need Jason Korner.

Call Him Now At 314-409-2659.


People also ask…

Is income tax evasion a felony?

Income tax evasion is a felony. A charge of Federal Income Tax Evasion carries the stiffest penalties of any of the related charges.


An individual could be facing up to five years incarcerated under the watchful eye of the Bureau of Prisons and/or fines up to $250K or both. In addition, there could be the dubious honor of having to pay for the prosecutor’s costs.


How do you go to jail for tax evasion?

If someone is evading paying taxes, chances are good that the Internal Revenue Service has some pretty reliable evidence. It will, however, be necessary for the IRS to prove intent. So a defense will need to be mounted quickly if one is expecting to be charged with Federal Tax Evasion.


What are the difference between tax evasion and tax avoidance?

Tax evasion involves illegal means of hiding proper income from the IRS whereas avoidance is a legal means by which citizens may structure their finances in order to minimize taxes.


The key difference is that the first is illegal and uses illegal means to avoid paying taxes and the second is the legal means of doing the same.


Is tax avoidance legal?

Tax avoidance is legal. Of course, some may argue that it is immoral or unethical, but that is not for the scope of this question. The simple fact is that every taxpayer may and should seek any legal means by which the IRS provides for the lowering of taxes.