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Tax Violations

Tax law encompasses any laws and regulations that are a part of the tax process. The state of Texas doesn’t require residents to pay income taxes. However, Texans must still file Federal Income Tax Returns. There are certain tax violations that may land you in serious legal trouble. 

They are tax evasion, filing false tax returns, tax preparation fraud, and failure to file. If the Internal Revenue Service (IRS) flags your tax return during an audit or finds that you didn’t file at all, you’ll need an experienced attorney to help you navigate the consequences. If you’re found guilty, you may be penalized with hefty fines and imprisonment.

If you’re accused of defrauding the IRS, reach out to the Law Office of John R. Teakell immediately to start building your defense and minimize potential penalties. 

Case Area:

Tax Evasion

Tax crimes occur when people take evasive measures to avoid paying taxes. The concept of tax evasion can be applied to individuals who file false tax returns or don’t file at all. These crimes are categorized as either negligence or civil fraud.  Common circumstances that lead to this point are misrepresenting your income, hiding money overseas, or claiming tax write-offs that don’t apply to you. The deciding factors about the penalties you’ll incur are your intentions and actions. 

You may be accused of negligence if you attempt to comply with IRS regulations, but make a reporting error. This is the less severe accusation, and you’ll likely only have to pay the amount you owe and a percentage of that amount. Civil Fraud is significantly more serious because you intentionally avoided paying taxes. This can result in hefty fines and jail time. 


Tax Fraud

Knowingly and willfully filing a false income tax return is a federal crime. This type of fraud occurs when a tax preparer submits falsified tax returns either intentionally or accidentally. This can be perpetuated by the individual or an outside filer, however, the consequences fall on the taxpayer. People may accidentally write off too much, and not comply with the ever-changing tax preparation regulations. A tax preparer may also get you in trouble with the IRS by grossly underreporting your income or overestimating your tax exemptions. 

Tax Preparation Fraud

Return Preparer Fraud happens when a preparer inflates personal or business expenses, claims false deductions, and credits to manipulate the system and get their client a better deduction. Sometimes, the taxpayer may not even be aware of the falsified information on their tax return. However, if the IRS detects false information you may be the one subject to fines and jail time. This crime could lead to five years imprisonment and a $250,000 fine. 

Failure to File

The Failure to File penalty applies to taxpayers who don’t file taxes or file late. Typically, you will owe the government interest for each month you don’t file. The only exception that excuses you from filing is if you make less than the taxable amount, and the government would owe you money. Not filing your taxes at all can be quite expensive, and you’ll ultimately pay more than if you just file and pay what you can. 


What Does a Tax Lawyer Do?

The IRS has a team of auditors that reviews people’s taxes and investigates filings that appear inaccurate or exaggerated. If you’re caught, they can penalize you or refer you to the IRS’ criminal investigation division (CID). A tax attorney can help you with back taxes, bank levies, wage garnishments, payroll tax issues, or business tax issues. John Teakell has years of experience in this industry and will help defend you against the IRS.

John R. Teakell Can Help

The Law Office Of John Teakell reacts quickly to IRS tax collection efforts and prevents wage garnishments, bank levies, tax liens, and other consequences that would be detrimental to your financial health. An IRS tax return audit may find false tax returns, failure to file, or tax preparation fraud. Whether it was intentional or not you’ll be left to deal with the consequences. Huge penalties and interest may put you at risk of losing your home, business, or other significant possessions. John R. Teakell can help you get a reduction or eliminate penalties given time to build a defense.