What is IRS fraud?IRS fraud, also known as tax fraud or tax evasion is the broad term for the actions of corporations, individuals, trusts or other entities to avoid taxes by illegal means. This usually involves the taxpayers intentionally try to conceal or misrepresent the true state of the individuals affair to the IRS to therefore reduce their tax liability. This usually includes reporting taxes dishonestly.
How does a person report IRS fraud?A person may report IRS fraud directly to the IRS, to do this they need to fill out a Form 3949-A, and mail it in. A person may also write their personal letter and mail it to the IRS. If a person chooses to write their own letter there is specific information that needs to be included in the letter. This site has the Form 3949-A, as well as show what specific information that needs to be included in their letter.
Can a person receive compensation for IRS fraud?It is possible for a person who reports IRS fraud to be compensated. The process may take some time, since the agents have to clear a lot of red tape to issue a person a CI number. If the person reporting has their handling agent changed it just delays the process further. Those who are issued CIs may be paid CI fees for their cooperation, but their fees are based upon the case. It is also possible if a person reports other forms of government fraud that they may be compensated by a qui tam action.
What is the statute of limitations for federal income tax fraud?Income tax fraud has no statute of limitations. However, as a rule there is a statute of limitations of 3 years for the IRS to audit a tax return and a statute of limitations of 10 years for the IRS to collect tax. Also in the Internal Revenue Code under section 6501(a) and Income Tax regulations -1(a) assessment of the taxes must be done within 3 years of tax return being filed. This assessment must be done by the IRS. 2.(b) of the Income Tax Regulations it not possible for any court proceedings by the IRS if there has been no assessment for the collections of any taxes after 3 years has expired. The statute of limitations is six years if excess of 25% of the amount of gross income stated on the income tax return filed with the IRS is omitted by the taxpayer, under section 6501(e) of the Tax code -1. There is no statute of limitations when the case of fraudulent tax return or false tax returns that are filed with IRS, with the intent to evade taxes.
What is the sentence for conspiracy to defraud the government, as in a tax fraud scheme?The sentence for conspiracy to defraud the government may be up to five years in prison.
IRS fraud is a serious charge, and can carry some serious penalties. It happens all over the United States, and people often want to know what is being done about it, or how is it handled. When it pertains to these types of questions a person can ask an Expert.