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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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The Federal Crime of Failure to File a Tax Return

In Tax Fraud by Jason FreemanLeave a Comment

In the recent case of United States v. Stockler, the taxpayer-defendant pleaded guilty to willfully failing to file a federal income tax return.  While the appellate decision primarily focuses on the appropriate loss figure for purposes of the U.S. Sentencing Guidelines, the case provides yet another reminder that it is a federal crime to willfully fail to file a tax …

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The Badges of Fraud

In Tax Fraud by Jason Freeman1 Comment

Over the years, courts have developed a litany of so-called “badges” of fraud that may indicate that a taxpayer exhibited fraudulent intent.  These badges (or “flags” or indicators) of fraud may be used by the IRS as a basis to infer the existence of the level of intent necessary to assert a civil fraud penalty under Section 6663 of the Internal …

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Suspected Currency Structuring Leads to Enhanced Sentence for Tax Fraud

In Tax Fraud by Jason FreemanLeave a Comment

In a recent opinion, the Fifth Circuit Court of Appeals upheld an above-Guidelines sentence in a criminal tax case involving indications of currency “structuring.”  The defendant, Nguyen, was charged with aiding and assisting in the preparation of a false and fraudulent tax return.  The 36-month sentence, handed down by the lower district court, was approximately 2 years longer than the …