Michigan Tax Fraud Lawyer

FAQs

What Are Some Examples of Tax Crimes in Michigan?

In Michigan, tax-related offenses can vary from not filing a tax return to more severe violations such as fraud or tax evasion. Common examples include failing to report all income, claiming inflated deductions, not paying payroll taxes, or submitting false or misleading tax forms. The Michigan Department of Treasury and the Attorney General’s Office generally handle the investigation of these tax offenses. Tax offenses involving federal tax laws can also result in federal investigations and prosecution.

Tax law violations in Michigan can result in significant criminal penalties and financial repercussions, regardless of whether they happen on purpose or from a clerical mistake.

Who Investigates State Tax Fraud in Michigan?

In Michigan, state tax fraud is mainly investigated by the Discovery and Tax Enforcement Unit within the Michigan Department of Treasury. This unit utilizes multiple tools to detect individuals or businesses that fail to comply with state tax regulations. Alongside the Department of Treasury, both the Michigan Attorney General and local District Attorneys also have the authority to enforce state tax laws.

Can I Be Charged for a Mistake on My Tax Return?

In most cases, an honest error on your tax return won’t lead to criminal charges or jail. However, if the mistake causes you to underpay taxes, the IRS may still apply penalties and interest. The Michigan Department of Treasury may investigate if it suspects a filing error resulted from intentional or reckless conduct. Having documentation and legal representation in such situations allows you to demonstrate intent (or lack thereof) and prevent criminal proceedings from occurring.

What Should I Do if I Receive a Tax Audit Notice?

Getting a tax audit notice from the IRS or your state’s tax agency can be stressful, but it’s crucial to remain calm and respond promptly with appropriate action. A tax audit does not mean that you are under criminal tax investigation. If you are subject to an audit, consult with a tax attorney or CPA, or both. The audit might reveal problems that could result in civil fines and criminal prosecution, but an audit is not necessarily cause for great concern in and of itself.

See Related Post:

• Steer Clear of Criminal Tax Charges: Understanding the Difference Between Tax Avoidance and Tax Evasion