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What Is Tax Fraud vs. Negligence? Why You Need To Know The Difference

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    So, you think you may have made a mistake on your taxes when you filed. Or, you knew you made a mistake on your taxes when you were filing and chose not to correct it, while crossing your fingers and hoping no one at the IRS noticed.

    Ask yourself, do you understand the difference between tax fraud vs. negligence?

    Since it wasn’t that big of a mistake, you’re optimistic that your harmless blunder will go unnoticed.

    Now you are worried that you may have committed tax fraud. Does what you did meet the definition of tax fraud? Is the IRS going to come after you for criminal tax fraud?

    How The IRS Defines Tax Fraud vs. Negligence

    The IRS states that tax fraud is, “intentional wrongdoing, on the part of a taxpayer, with the specific purpose of evading a tax known or believed to be owing.” Tax negligence, on the other hand, is defined as “any failure to make a reasonable attempt to comply with the tax law. The term “disregard” includes any careless, reckless or intentional disregard.”

    If you don’t have a tax attorney yet, you need to get one right now. There is no good time to go through an interview with the IRS. Especially if you do not have legal representation.

    What’s more, you may never have to meet with the IRS if you have a good tax attorney who can handle your tax filing mistake.

    We help countless clients with unintentional tax filing mistakes. We know exactly what to do. We also know how to handle correspondence and meetings with the IRS.

    Tax Deadlines And Tax Fraud Vs. Negligence

    What is Tax Law?

    By definition, tax law is the body of law which deals with how taxes are imposed by the government to its people.

    Most people recognize tax law  as having something to do with why they file their taxes every year with the IRS.

    Tax law is both a challenge to understand and mandatory to follow by everyone living and working in the United States.

    When you make a mistake on your tax filing you need to address the issue as soon as you can. Many people realizing their tax filing mistake, file an amended return addressing the mistake. 

    Tax Law Applications

    But that may not stop the IRS from auditing you, assessing you with fines, and penalties or opening up a criminal investigation. The good news is only about .22% of people go to prison each year for tax crimes. 

    But you do need to understand how the tax law applies to you especially concerning tax fraud. How does the IRS define tax fraud and how does the IRS define tax negligence?

    In essence, tax fraud includes any deliberate or intentional action taken to avoid paying a particular tax, which is commonly referred to as evasion. Tax negligence typically includes tax filing errors that are a result of simple carelessness.

    Best IRS Tax Relief Firms

    Now you know the legal difference between tax fraud and tax negligence. Understanding what tax fraud and tax negligence are does nothing to help you in dealing with the IRS.

    But at least you know what the IRS is looking to see if you did with your tax return.

    If you have made an unintentional mistake in your tax filing with the IRS, calling us before you are contacted by the IRS is the best way forward.

    Sometimes it is a simple matter of explaining your error to the IRS through our legal offices while filing the amended return. This helps leave the stress and doubt behind you once everything is finalized.

    We are one of the best IRS tax relief firms because we not only offer the best tax relief services, but we have successful resolutions with most of our tax relief cases.

    Tax Debt 

    We help you negotiate the best tax debt relief possible for mistakes made on previous tax years or in your amended returns.

    The IRS wants you to pay off your debt, but they don’t want to break you to do it. That doesn’t serve their purpose in getting your tax debt paid down.

    We negotiate the best terms for your agreement with the IRS. We are one of the best tax relief law firms in Texas, so we protect your rights while lowering your tax bill.

    This is a huge benefit to our clients because the difference in hundreds and thousands of dollars is substantial. Also, there is a difference in what is considered tax fraud and tax negligence by the IRS.

    We try to mitigate any negative perceptions the IRS has towards your tax filings. We don’t want you to ever have to deal with any tax fraud perception by the IRS.

    Tax fraud puts you in prison much of the time. Tax negligence results in penalties and fees most of the time. 

    When you have money, the legal system, and the IRS to deal with, it matters who you get to represent you. That’s why you need to consult with us regarding the facts of your tax filing mistake.

    What is Tax Fraud?

    Which leads us back to what is tax fraud? Is it possible you have committed tax fraud when you unintentionally made a mistake on your taxes when you filed them?

    It is doubtful that if you made an unintentional mistake on your taxes when you filed them you will have a criminal indictment issued against you for tax fraud.

    But making your case with the IRS when they find the mistake is when the critical decisions are made. Having the best tax lawyer in your corner can make a positive difference in your final outcome. 

    The consequences of tax fraud have a wide variety of fines, penalties and prison time attached to it. Some of which are;

    • Fines up to $250,000 per person or $500,000 for a business
    • Three years in jail 
    • The cost of prosecuting the case is assessed against you for payment

    Needless to say, you want to have a reputable tax attorney by your side if the IRS does send you notification of any returns you filed in which they suspect tax fraud.

    The good news as we mentioned previously, is tax fraud criminal cases don’t often occur. 

    It is always important to know when you should hire a tax attorney. You should be aware of what situations require a tax attorney, or even when you need to consult a tax attorney. 

    Double Taxation

    Tax Lawyers

    Not all tax lawyers are created equal. Just like all tax cases don’t have the same end result.

    Many people don’t understand until they are standing up to their neck in it how complicated tax law is.

    Life has no business dealings or any major life events which don’t in some way have a tax consequence. 

    Tax lawyers are unique and specialize in a complicated area of U.S. law. Tax lawyers who specialize in tax law fill a special niche that many other attorneys cannot fill. Tax law is specialized.

    In almost all cases where the IRS has targeted someone for tax negligence or tax fraud, a good tax attorney can work out a deal with the IRS.

    The only way you can move forward is by going back and fixing the taxes you filed incorrectly.  

    Once you make sure this mistake is taken care of you will be amazed at how much lighter your load seems.

    The Benefit of a Good Tax Lawyer

    This deal will include you making payments towards your tax debt in installments or paying the IRS a compromised amount of money. Most of the time, it will be less than the original and full amount the IRS gave you.

    What’s more, most of the time you won’t have to deal with a criminal investigation.

    Tax lawyers cannot be compared to any other tax professional. Not even CPA’s or accountants. We have been practicing tax law for a long time and our legal tax experience stands on its own.

    We deal with everything from making a mistake on your tax form which has already been filed to the audit defense process with the IRS.

    Many times our clients will tell us they didn’t know they had to declare or pay tax on something.

    We let them know just because you don’t know the tax law regarding this instance, doesn’t mean you are exempt from the consequences when you don’t do it.

    Tax laws are complex and most people need the benefit of working with a good tax attorney for any tax concerns or issues they have. It is better to be safe than sorry when dealing with the IRS.

    Tax Fraud Vs. Negligence

    Are You Ready to Move Forward?

    People are not meant to carry around the complexities of all the ways tax laws can affect them if they make a mistake. That’s what good tax attorneys are for.

    You know what is tax fraud now. You also realize all the IRS can unleash on your life if they misunderstand a simple mistake on your tax filings for a serious crime

    No one should be scared of tax fraud when the solution to their IRS problems are right in front of them.

    We can help you with simple tax questions to complex tax legal cases. We don’t stop until we find a way to successfully resolve your tax issues. We try to do this with the least amount of financial and legal consequence possible. 

    But we cannot do anything unless you reach out to us and tell us what you need. Our consulting services include learning about your tax issue and deciding a good way forward with your needs.

    You can start on your financial recovery today if you reach out to us now. Your future awaits.

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