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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 …

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What is Bank Fraud?

In Bank Fraud, Fraud, Popular Posts, White Collar by Jason Freeman and Alex AillsLeave a Comment

18 U.S.C. § 1344 is commonly referred to as the bank fraud statute. It is used by the Department of Justice to prosecute “any scheme to defraud” a federal bank.[1]The scope of the phrase “any scheme” is broad; it has, for example, been used to prosecute check forging, check kiting, and embezzlement, among other things.  Making misrepresentations to a bank – …

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A Focus on Healthcare Fraud

In Fraud, White Collar by Jason Freeman2 Comments

Federal prosecutors recently announced the conviction of the former office manager of a home health care company for conspiring to commit Medicare fraud.  The case, which was brought as part of the Medicare Fraud Strike Force, demonstrates the way that federal government agencies coordinate through investigative partnerships to prosecute health care fraud.  The defendant in the case, the manager of …

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Tax Court Upholds Tax Fraud Assessment Against Incarcerated Former IRS Examiner and Disbarred Attorney

In Fraud by Jason FreemanLeave a Comment

The Tax Court recently upheld the assessment of a civil fraud penalty against an incarcerated/disbarred attorney.  Robert L. Schwartz v. Commissioner, TC Memo 2016-144.  The petitioner, who was also a former examiner with the IRS, had maintained a successful law practice specializing in personal injury for nearly 40 years before being convicted of mail fraud and of filing a false …

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A Brave New World: The Panama Papers and the United States’ Role as a Tax Haven

In Fraud, International Tax, OVDP by Jason Freeman1 Comment

As published in Today’s CPA Magazine.  For a link to the article, click here. In April of this year, a consortium of journalists released a bombshell data leak—a collection of some 11.5 million records, known as the “Panama Papers,” allegedly linking thousands of people across the globe to a web of secretive shell companies and offshore bank accounts formed through a …