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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 …

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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 …

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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 …

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Department of Justice Issues Warning on the Eve of Tax Deadline: Willful Tax Violators Face Prosecution

In Criminal, Willfulness by Jason FreemanLeave a Comment

The Department of Justice issued a public warning to taxpayers on the eve of this year’s tax filing deadline: Tax fraud carries serious consequences.  In a press release highlighting its recent criminal tax enforcement efforts, the DOJ warned that taxpayers who attempt to violate the federal tax laws should think twice and may face prosecution, prison and monetary fines and restitution. …

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Tax Crimes and the Sentencing Guidelines: Can Unclaimed Tax Deductions Be Considered in Calculating the “Tax Loss”?

In Criminal by Jason FreemanLeave a Comment

The Ninth Circuit Court of Appeals recently affirmed the sentence handed down following a defendant’s conviction on two counts of tax evasion in violation of 26 U.S.C. § 7201.  On appeal, the defendant argued that the lower court erred by not crediting unclaimed business expenses incurred by his company, DLSS, in calculating the applicable tax loss under the U.S. Sentencing …