The IRS doesn’t take fraud allegations lightly. This division of the government is one of the most determined about their job, and you have to take every communication with them incredibly seriously.
Did you receive notice that you’re suspected of tax fraud? Don’t act like it’s a minor issue. Don’t hope it just goes away in time. It won’t. You must know what steps you can take.
How do you focus your defense in a tax fraud case?
Even if you strongly believe you did not commit fraud — after all, an honest mistake is not fraud, even when it was undoubtedly a mistake — remember that the IRS won’t even contact you unless they think they have a case. Once they do, they’re going to investigate every little detail, leaving no stone unturned, and they’re not going to listen to excuses. Focus instead on showing them clearly why you at least believed you were doing the right thing and how you had no intent to defraud the government.
How common are tax fraud allegations?
One way to see just how serious the IRS takes this is to consider that a mere 2% of those living in the United States will ever be the subject of these investigations regarding fraud. The IRS does not investigate people on a whim. You can imagine, therefore, just how much work they do to pull together an ironclad case with every investigation. They are efficient, thorough and willing to go through extensive paperwork.
If you have been accused of fraud, you may be afraid that you’ll be imprisoned or have to pay massive financial fines — or both. This can be stressful and overwhelming. Make sure you understand exactly what legal options you have to get through this process.