View Post

Tax Crimes: Section 7203 and Willful Failures to File a Tax Return

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

Section 7203 of the Internal Revenue Code creates the federal crime of willfully failing to (1) file a tax return, (2) supply information, or (3) pay a tax.  The Department of Justice’s position is that this misdemeanor offense of willfully failing to file a tax return, pay tax, keep records or supply information should only be charged when a defendant …

View Post

I.R.C. § 7212 – INTERFERING WITH THE ADMINISTRATION OF TAX LAWS

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

Internal Revenue Code section 7212(a) creates two separate offenses: (A) Corrupt or forcible interference, and (B) corrupt endeavors to impede.   The relevant statute provides as follows:   I.R.C. § 7212 – ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF INTERNAL REVENUE LAWS (a) Corrupt or Forcible Interference.–Whoever corruptly or by force or threats of force (including any threatening letter or communication) …

View Post

Tax Evasion: Attempting to Evade the Assessment of Taxes

In Criminal, Fraud, Tax Evasion, Tax Fraud by Jason FreemanLeave a Comment

“Tax evasion” is a shorthand phrase often used to describe a wide variety of tax-related fraud.   The crime under the federal tax laws, however, is a rather specific one, and requires that the government establish specific elements in order to sustain a conviction.   This resource focuses on a particular strand of tax evasion: Attempting to evade the assessment …

The Crime of Tax Evasion

In Criminal, Tax Evasion, Tax Fraud by Jason FreemanLeave a Comment

The Crime of Tax Evasion   Section 7201 of the tax code creates the federal crime of tax evasion. The crime of tax evasion  has historically served as the principal tax revenue offense. There are two potential offenses under section 7201: (A) the willful attempt to evade or defeat the assessment of a tax, and (B) the willful attempt to evade …

IRS Use of Big Data Leads to 400% Increase in Detection of Tax Fraud by Criminal Investigation Division

In Criminal, Tax Fraud by Jason FreemanLeave a Comment

IRS Use of Big Data Leads to 400% Increase in Detection of Tax Fraud by Criminal Investigation Division IRS detection of tax fraud is up nearly 400%, largely from its use of data analytics.  According to its recent report, the IRS Criminal Investigation Division identified nearly $10 billion in tax fraud in 2018—an increase from the $2.5 billion it identified …

View Post

Texas Tax Return Preparer Sentenced To Prison For Preparation of False Tax Returns

In Criminal, Tax Fraud by Jason FreemanLeave a Comment

The Department of Justice Tax Division recently announced its conviction and sentencings of a Texas-based tax return preparer to 42 months in prison.  The preparer was convicted of aiding and assisting in the preparation and filing of a false tax return and aggravated identity theft.     Court documents provide the following description of the scheme at issue: Shermin Marshall …

View Post

Government Report Recommends More Criminal Referrals for Employment Tax Violations

In Criminal, Employment Tax, Trust Fund Penalty by Jason FreemanLeave a Comment

A recent government report recommended that the IRS beef up its use of the Trust Fund Recovery Penalty and more liberally refer employment tax cases for criminal investigation.  The report, issued by the Treasury Inspector General for Tax Administration (“TIGTA”), A More Focused Strategy Is Needed to Effectively Address Egregious Employment Tax Crimes, was somewhat critical of the IRS’s failure …