NYC Federal Tax Fraud Lawyer

Tax Fraud Lawyer In NYC Federal

Federal tax fraud is a serious matter. It is more than a tax audit. It is a federal issue that can result in severe consequences. Even a simple mistake can turn into criminal charges, causing your life and business to be scrutinized. Even worse, your assets could be seized, and you could face criminal penalties. If you are suspected of federal tax fraud, a NYC federal tax fraud lawyer can help you through the legal process to fight for your future.

Why Choose Us?

The Law Office of Jonathan Savella has a great deal of experience and is committed to protecting our clients from accusations of federal tax fraud. With our individualized approach, every client is given the time and knowledge they need to successfully negotiate these difficult legal situations. We understand the seriousness of a federal tax fraud accusation, and we are committed to protecting your rights and fighting for your freedom.

What Is Federal Tax Fraud?

Federal tax fraud involves deliberately and intentionally defrauding the Internal Revenue Service (IRS) by not paying taxes. Unlike smaller infractions where negligence or ignorance led to filing errors, federal tax fraud involves intent. This means the defrauder knowingly meant to provide false information or omit important information to mislead the government.

IRS-CI regained its 90% conviction rate in fiscal year 2024, obtaining 1,571 convictions and initiating over 2,667 criminal investigations. Through its investigative efforts, the agency found nearly $9.1 billion in tax and financial crime fraud, secured court orders totaling $1.7 billion in restitution to the IRS, and seized around $1.2 billion in illegal assets.

Examples of Federal Tax Fraud

Federal tax fraud in NYC can take several forms. Some common examples of federal tax fraud include:

• Underreporting income. When an individual does not report their total income, especially income that went untaxed, this is tax fraud. Examples of underreported income include freelance work, offshore income, rental income, and payments made in cash.
• Exaggerating deductions. This happens when a person claims business expenses they did not make, claims they donated to charities they did not donate to, claims they gave more than they did or fraudulently claims tax credits to decrease their tax liability.
• Not filing a tax return. It is illegal to willfully neglect to file tax returns to avoid detection, especially doing so over multiple years.
• Using offshore accounts. It is unlawful to use offshore accounts to hide assets, income, and other taxable items.
• Employer-Related Fraud. Often seen in small businesses or businesses that deal primarily with cash, some employers commit fraud when they fail to withhold or pay social security, Medicare, or income taxes on behalf of their employees.
• Submitting falsified documents. Using fake documents or inputting fake information, such as social security numbers and business records, can result in a federal tax fraud investigation.

The IRS uses highly sophisticated tactics to detect instances of fraud, such as data analytics, whistleblower tips, and subpoenas. They work to gather enough information and evidence for prosecution.

Potential Penalties for Federal Tax Fraud

Once a person is convicted of federal tax fraud, the penalties for doing so are steep. Some penalties include:

• Prison time. An offender can face imprisonment for up to five years.
• Fines. An individual may face fines up to $100,000, and corporations can face fines up to $500,000.
• Restitution. Convicted persons and organizations may be ordered to pay back the full amount of the taxes they tried to evade to the IRS, subject to interest and additional penalties.
• Asset seizure. In some cases, the offender’s assets may be forfeited, depending on the nature of the offense.

How a NYC Federal Tax Fraud Lawyer Can Help

A knowledgeable federal tax fraud attorney can significantly impact the result of your case by defending your rights, interacting with federal prosecutors, and contesting the IRS’s evidence. The U.S. District Courts for the Southern District, located at 500 Pearl Street Eastern District, located at 225 Cadman Plaza East, handle many federal tax fraud prosecutions in New York City.

A competent local lawyer can successfully navigate the legal system since they are familiar with the staff and processes of these courts. Early legal action may help lower penalties or perhaps avoid charges altogether, regardless of whether you are currently being investigated or have already been charged.

FAQs

Q: Who Investigates Federal Tax Fraud?

A: The IRS Criminal Investigation Division (IRS-CI) is the primary investigator of federal tax fraud. This group investigates tax law violations thoroughly. While the IRS-CI is the primary investigator, they will often collaborate with other organizations, such as the FBI, the DOJ, and U.S. Attorneys’ Offices to help develop cases.

Q: How Do You Report Someone for Federal Tax Fraud?

A: If you suspect tax fraud, you can report it online or by mail using IRS Form 3949-A, Information Referral. People can use this form to anonymously report others for problems like offshore accounts, bogus deductions, or underreported income. For reliable tips that lead to taxes being recovered, the IRS Whistleblower Office may provide financial prizes.

Q: Can You File a Claim Against Someone for Tax Fraud?

A: A person can, theoretically, file a claim against someone if they incurred damages from their fraudulent activity. Tax fraud is typically prosecuted by the government, so filing a claim for tax fraud in and of itself is not possible unless you suffered some sort of damage because of it. An example of this would be if the perpetrator used your identity to make false claims, and you lost money because of it.

Q: How Long Does a Tax Fraud Case Take?

A: The resolution of federal tax fraud charges may take months or even years. Particularly in complicated situations involving substantial sums of money or several businesses, the research step alone may take several months. Depending on the court’s timetable and the particulars of the case, the legal process, including indictment, pretrial motions, negotiations, or trial, may prolong the time frame after the person is charged.

NYC Federal Tax Fraud Lawyer

If you have been accused of federal tax fraud, you can fight for your future. The Law Office of Jonathan Savella can help. Contact us today for more information.