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An Overview Of The Most Common Tax Fraud Charges In Florida

TaxFraud2

Authorities are cracking down on tax fraud. Last year, NPR published a story on the Internal Revenue Service (IRS) and its preparations to ramp up enforcement of tax evasion. Earlier this month, congress passed a bill that approved additional funding for tax enforcement—particularly focused on high income earners. Tax fraud can lead to very serious criminal charges. Here, our Orlando white collar criminal defense lawyer discusses three common tax fraud charges that could be filed against a person in Florida.

  1. Tax Evasion (Federal)

Tax evasion is a serious federal crime. It falls under Internal Revenue Code § 7201. A person could be arrested for and charged with federal tax evasion under IRC 7201 if they are determined to be guilty of willfully/intentionally evading or defeating the federal income tax. This is a very serious felony offense. For a single count of tax evasion, a person could face a maximum criminal penalty of five years in federal prison and a $100,000 civil fine. If you or your loved one is facing federal income tax evasion allegations, it is imperative that you have professional legal representation.

  1. Intentional Failure to File (Federal) 

An individual can be charged with federal tax fraud if they intentionally fail to file their taxes when required to do so by law. Under Internal Revenue Code § 7203, willful failure to file is a felony federal offense. It carries maximum criminal penalties of up to 365 days in federal prison and a $25,000 civil fine. To obtain a conviction for failure to file under IRC 7203, prosecutors must prove that a person’s failure to file taxes was “willful.” Mistaken non-filing of federal taxes is not a criminal offense. Though, there may still be civil financial liability. 

  1. Tax Fraud (Florida) 

Of course, tax fraud is not merely a federal crime. A person could also be charged with tax fraud for  state-based violation. As Florida does not have a state income tax, income tax evasion is not an issue in order. However, it does have sales taxes, property taxes, and other taxes. Under Florida Statutes § 198.40, a person can be charged with a criminal tax fraud offense if they willfully “evade or defeat any tax” required by law. In Florida, the severity of a tax fraud charge is determined primarily by the amount in question. Most often, state tax fraud charges in Florida are centered around the alleged underpayment of sales tax. A person could face a third degree felony charge.

Consult With Our Orlando Tax Fraud Defense Lawyer Today

At The Baez Law Firm, our Florida white collar crimes defense attorney is a devoted advocate for justice. We understand that each case is different and we are committed to personalized guidance and support. If you were charged with tax evasion/tax fraud, our criminal defense team is here to help. Give us a call now or contact us online for a fully private case review. We have offices in Orlando and Miami and provide results-focused criminal defense services across all of Florida.

Source:

npr.org/2021/05/22/999418518/irs-cracking-down-on-tax-fraud

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