4 Federal Tax Crimes the IRS Will Notice

 Posted on February 18, 2022 in Federal Crimes

Chicago federal crimes attorneyWith the tax season beginning, it may be a good time to take a look at a few rather common types of tax crimes. It can be very tempting for individuals at any income level to try to maximize their return or minimize their liability using illegal methods. This type of white-collar crime is being cracked down on. There is no such thing as a “white lie” when it comes to filing your income taxes. If you are caught, the IRS makes a formidable opponent, and you could end up in federal prison. Should you be accused of a tax crime, you will need a highly experienced attorney to help you resolve your case and reduce the likelihood of severe consequences. 

What Are the Types of Tax Fraud the IRS Looks for?

Honesty is the best policy when it comes to filing a tax return. Often, the higher your income, the more scrutiny you may be under - but this does not mean those with lower incomes can get away with tax crimes. Types of tax fraud the IRS will be looking out for on 2021 tax returns include: 

  • Identity theft - Some people will attempt to file a fraudulent tax return using someone else’s identity in order to obtain a tax refund that does not belong to them. As with voter fraud, the person whose identity is used is frequently deceased. Otherwise, the scheme is typically discovered when the victim tries to file their own tax return. 
  • Not reporting income - All sources of income must be reported. “Side gigs” are increasingly ubiquitous as many individuals and families struggle to stay afloat after being affected by COVID-19. This (usually cash) income must still be reported. 
  • Not filing - Single individuals under 65 years old must file if they earned over $12,550. Married couples filing jointly who are both under 65 must file if they collectively earned over $25,100. Willfully failing to file a return when you are required to is illegal, and you can expect the IRS to notice. 
  • False claims - Any type of untruthful claim on a tax return can amount to tax fraud. Often, this relates to false reporting of deductible expenditures. 

Another increasing problem the federal government has had to deal with involves frivolous claims made in an effort to avoid paying taxes. “Sovereign citizens” may file ridiculous claims, making patently silly arguments. Others have filed suits alleging that only federal employees are subject to income tax. The IRS has lost its patience with these frivolous claims. Do not file one - you will not prevail, and you could be heavily penalized for wasting a federal court’s time with this type of lunacy. 

Should you make a legitimate mistake on your tax return and find yourself facing an audit, you may want to speak with an attorney. Criminal charges are generally avoidable if this is the case, but you could still face penalties. 

Call a Chicago Federal Tax Crime Attorney

If you come under suspicion for any type of tax fraud or another tax crime, it is best to call an experienced Chicago federal tax crime lawyer sooner rather than later. The sooner you reach out to Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, the better we may be able to help you. Call us at 312-629-0669 for a free, confidential consultation. 



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