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Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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If a business partner paid a partial settlement of $20,000 ...

Customer Question

If a business partner paid a partial settlement of $20,000 in 1 year and wrote a check for $ 3000. and didn''t issue it in the same year and changed the dates on both checks and put them in the previous year''s tax return, is this tax fraud?
Submitted: 9 years ago.
Category: Business Law
Expert:  Ellen replied 9 years ago.

Hello,

Generally speaking and based only on the information contained in your post, it is tax fraud.

Title 26 USC § 7201-
Any person who willfully attempts to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof:
* Shall be imprisoned not more than 5 years
* Or fined not more than $250,000 for individuals ($500,000 for corporations)
* Or both, together with the costs of prosecution

Title 26 USC § 7206(1)-
Any Person who… (1) Declaration under penalties of perjury - Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; shall be guilty of a felony and, upon conviction thereof;
  • Shall be imprisoned not more than 3 years
  • Or fined not more than $250,000 for individuals ($500,000 for corporations)
  • Or both, together with cost of prosecution
Title 26 USC § 7206(2)-

Any person who…(2) Aid or assistance - Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the Internal Revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; shall be guilty of a felony and, upon conviction thereof:

  • Shall be imprisoned not more than 3 years
  • Or fined not more than $250,000 for individuals ($500,000 for corporations)
  • Or both, together with cost of prosecution

I hope that I have fully answered your question and the answer was helpful to you.

If you have any additional questions that you would like me to assist you with, you can start your question off with: This question is for FLANDNYLAWYER.

THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Ellen and 4 other Business Law Specialists are ready to help you
Customer: replied 9 years ago.
Am I, since I learned of this, guilty of fraud if I don't report it to the IRS?
Expert:  Ellen replied 9 years ago.
Please remember that this is a public website. There is no attorney client privilege since I am giving you information and not legal advice. Be certain not to post anything that could be incriminating in any manner to you.

If you signed the tax return or had knowledge before the fact, I suggest that you make a private consultation with a local lawyer with tac fraud experience.

I hope that I have fully answered your question and the answer was helpful to you.

If you have any additional questions that you would like me to assist you with, you can start your question off with: This question is for FLANDNYLAWYER.

THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE
Customer: replied 9 years ago.
What' the amount for the answer to my reply
Expert:  Ellen replied 9 years ago.
You can give me a bonus if you want. It is totally up to you.