Grand Rapids Tax Fraud Lawyer

Defining Tax Fraud Crimes in Grand Rapids

Every year, the United States loses roughly one trillion dollars to tax fraud. Some people, though, do not mean to commit this act, and having a defense attorney to represent them in their case is vital. When a person is accused of tax fraud, the prosecution involved in the case must prove that they intentionally and knowingly deceived tax authorities.

Tax crimes can come with severe penalties, such as lengthy prison sentences, large fines, and damage to your personal or professional reputation. The most common criminal tax charges include:

• Failing to file. When a person or organization fails to file their personal or business tax returns to avoid paying taxes, they are committing a tax crime and can be arrested for tax fraud. Failing to file taxes is generally a misdemeanor, but it can be elevated to a felony if the failure to file was part of a willful attempt to evade or defeat taxes, such as by hiding income, falsifying documents, or failing to pay over taxes withheld from employees.
• Tax evasion. These crimes can occur when a person or an organization willfully attempts to evade paying their necessary taxes. According to the IRS, millionaires and billionaires are guilty of evading more than $150 million in taxes every year. Whatever your wealth status though, the team at SBBL Law is here to fight for you. We understand how a simple mistake, misunderstanding, or bad accounting advice can lead to criminal charges.
• Withholding income. Withholding income can occur when a person or an organization hides certain forms of income or assets to avoid paying taxes on these items. This can involve the physical movement of assets from one place to another, where they are less likely to be discovered, or simply underreporting income on tax returns.
• Falsely claiming deductions or business expenses. When a business or organization inaccurately lists deductions or expenses on their tax returns to pay less in taxes, this is tax fraud.
• Employment tax fraud. When someone withholds payroll taxes from employees but fails to pay those withholdings to the IRS, that can be charged as tax fraud.
• Underreporting income. For both people and businesses, failing to report all taxable income can lead to facing tax fraud charges.