So you reported a fictitious business on your income tax return. The fictitious business resulted in a tax loss and, maybe, you got a large tax refund from the IRS as a result of it. It’s a fraudulent tax return. The IRS sends you an IRS audit notice. What do you do? The answer varies,…
Category: Fraud Penalties
Fraud Penalties
Fraudulent activities can result in severe penalties, including fines, imprisonment, and seizure of assets. We assist clients facing fraud allegations. Give us a call to see how we can help, (713) 909-4906.
No Criminal Fraud, But Civil Fraud Penalty Applies
Tax fraud is a serious crime that carries severe penalties, including substantial fines and imprisonment. But what happens when a criminal court finds that the conduct in question does not rise to the level of tax fraud, yet a civil court later determines that it does? This was the dilemma faced in Maciel v. Commissioner,…