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Penalties for Tax Fraud: Understanding the Consequences

Posted by Kamyar Mehdiyoun, Esq. | May 20, 2023

Tax fraud penalties can vary depending on the specific circumstances of each case. The Internal Revenue Service (IRS) has stringent guidelines in place to deter and punish individuals involved in fraudulent tax activities. Here are some of the penalties you may face if convicted of tax fraud:

1. Civil Penalties: Civil penalties aim to address the financial aspect of tax fraud. They often involve substantial monetary fines, which can include penalties based on the amount of tax underpaid, accuracy-related penalties, and interest charges.

2. Criminal Penalties: In more severe cases, tax fraud may result in criminal charges. If found guilty, you could face imprisonment, fines, or a combination of both. The duration of imprisonment and the amount of fines depend on the specific details of the offense, such as the amount of taxes evaded and any additional criminal conduct involved.

3. Asset Seizure: The IRS has the authority to seize assets to recover unpaid taxes resulting from fraudulent activities. This can include freezing bank accounts, garnishing wages, or placing liens on property.

4. Loss of Reputation: Being convicted of tax fraud can have long-lasting effects on your personal and professional reputation. It may harm your credibility, hinder future business opportunities, and lead to damaged relationships.

If you believe you may be subject to tax fraud penalties, contact Kamyar Mehdiyoun, Esq. for an initial consultation. Facing the IRS alone in a criminal tax investigation matter is fraught with danger Competent legal representation in such cases is crucial. You may schedule a free consultation with a tax lawyer here.

About the Author

Kamyar Mehdiyoun, Esq.

Kamyar Mehdiyoun, holds a Master of Law (LL.M.) degree in taxation from Georgetown University Law Center and focuses his practice on tax law. In 2003, he received the Award for Excellence in Tax Practice and Procedure from Georgetown. He also holds a Certificate in Employee Be...

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