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Tax Preparers and Criminal Exposure: Be Careful Out There!

In Criminal by Jason FreemanLeave a Comment

The recent case of United States v. Berger demonstrates the criminal exposure that accountants face when advising clients about taxes and preparing tax returns.  In that case, Berger, a CPA, was found guilty of aiding and abetting the preparation of false tax returns.  A copy of the Indictment is available here.  The charges, which were brought under IRC section 7206(2), are …

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7206(2): The Crime of Aiding or Assisting the Preparation of a False or Fraudulent Document

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

  Section 7206 establishes, among other crimes, the federal tax crime of making false or fraudulent statements to the IRS, and aiding or assisting a taxpayer in making such statements.  This post focuses on the crime of aiding or assisting the preparation of a false or fraudulent document that is presented to the IRS.   The relevant statute provides as …

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Section 7206(1): False Tax Returns and Statements

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

Section 7206 establishes, among other crimes, the federal tax crime of making false or fraudulent statements to the IRS, and aiding or assisting a taxpayer in making such statements.  Common violations of section 7206 include falsely inflating deductions or underreporting income. However, unlike a number of other federal tax crimes, section 7206 does not technically require that the government prove …

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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 …

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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) …

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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 …