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IRS Tax Evasion & Tax Fraud Crimes A Review for South Carolina Criminal Tax Lawyers, Attorneys, & Law

Firms & South Carolina Consumers Tax fraud crimes in South Carolina and the United States are on the rise. SC consumers and their white collar criminal defense SC tax attorneys & SC tax lawyers need to be aware of criminal penalties for committing federal tax crimes. SC white collar criminal defense tax attorneys and SC tax lawyers need to be aware of the circumstances of the applicable federal tax fraud criminal laws in order to properly assess potential criminal liability of their individual and corporate clients. Common federal IRS tax fraud allegations include failure to pay taxes, submitting false information or fraudulent income tax returns, and directing another person to prepare and/or submit false information or fraudulent tax returns. SC Consumers and their white collar criminal defense tax lawyers, attorneys and law firms need to know what laws apply to conduct which violates IRS criminal laws and the applicable criminal penalties. A SC taxpayer should never discuss his or her potential criminal conduct with an IRS investigator, even if he thinks that he has nothing to hide and has done nothing wrong. Interviews can be misinterpreted and a taxpayer’s words can be misconstrued or twisted and eventually used against him and may end up as additional charges. Often the IRS charges a taxpayer with making false statements in violation of 18 USC § 1001 when the taxpayer tries to explain his position to the IRS Revenue Officer or Special Agent. Whenever a taxpayer may have committed a tax fraud, not filed his income tax returns, not paid his income taxes, or filed fraudulent returns or documents to the IRS, a criminal attorney should be hired and should communicate with the IRS special agents. The Internal Revenue Service Criminal Investigative Division (IRS-CID) conducts criminal tax investigations. Some signs that a potential IRS indictment or charge is forthcoming can include an IRS Revenue Officer who has been pressing you for payment abruptly disappears and will not return your phone calls; an IRS Revenue Agent who has been auditing your tax returns abruptly goes silent; your bank receives an IRS summons or a grand jury subpoena issued at the request of the U.S. Attorney’s Office; or your CPA receives a federal grand jury subpoena to testify. A SC Criminal Tax Attorney or Lawyer should be immediately retained at this time. The following are the major IRS statutes of which the consumer and criminal tax lawyers must be aware. Title 26 USC § 7201 -- Attempt to evade or defeat tax 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 § 7202 -- Willful failure to collect or pay over tax Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to penalties provide by the law, be guilty of a felony: 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 § 7203 -- Willful failure to file return, supply information, or pay tax Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof: Shall be imprisoned not more than 1 years Or fined not more than $100,000 for individuals ($200,000 for corporations) Or both, together with cost of prosecution Title 26 USC § 7206(1) -- Fraud and false statements 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) -- Fraud and false statements 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

Title 26 USC § 7212(A) -- Attempts to interfere with administration of Internal Revenue laws Whoever corruptly or by force endeavors to intimidate or impede any officer or employee of the United States acting in an official capacity under this title, or in any other way corruptly or by force obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title, upon conviction: Shall be imprisoned not more than 3 years Or fined not more than $250,000 for individuals ($500,000 for corporations) Or both Title 18 USC § 371 -- Conspiracy to commit offense or to defraud the United States If two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each: Shall be imprisoned not more than 5 years Or fined not more than $250,000 for individuals ($500,000 for corporations) Or both CONCLUSION South Carolina consumers must have an understanding of the basics of tax fraud and tax evasion in order to properly assess potential criminal liability if they have been involved in a tax fraud/evasion scheme and in order to protect themselves if they have been the victim of a tax fraud/evasion scam. South Carolina white collar criminal defense attorneys must understand the basics of tax evasion in order to adequately represent clients who have been charged or indicted with tax evasion or tax fraud violations. A white collar tax fraud or tax evasion criminal conviction can have life altering consequences for those defendants convicted of the same. A defendant who is charged or indicted with the federal crime of tax fraud should consult with a SC criminal lawyer who is knowledgeable about the substantive law regarding federal tax evasion/fraud as well as the applicable federal sentencing guidelines. © 2010 Joseph P. Griffith, Jr.

Joseph P. Griffith, Jr. SC Tax Fraud Criminal Attorney SC Tax Evasion Lawyer SC Criminal Defense Tax Crimes Law Firm Joe Griffith Law Firm, LLC 7 State Street Charleston, South Carolina 29401 (843) 225-5563 http://www.joegriffith.com South Carolina Attorney Joe Griffith is a former SC federal prosecutor who handles IRS tax fraud cases, federal criminal tax evasion cases, IRS tax fraud scheme cases, failure to file income tax return cases, in South Carolina and the United States. © 2010 Joseph P. Griffith, Jr.