IRS Tax Debt & IRS Tax Fraud: What to do if You're Suspected of IRS Tax Fraud by IRS Criminal Investigations
IRS Tax Fraud- Red Handed: Guilty of Tax Fraud? If you don't owe IRS Tax Debt, you will soon! You can't rest easy when you're guilty of IRS tax Fraud and you know the IRS Criminal Investigations department is on your tail. The IRS is redoubling their efforts to catch those who have committed IRS Tax Fraud. The number of people the IRS Criminal Investigations division tracks down increases every year, so it's important to know what to do if you're guilty of IRS Tax Fraud if you don't want to owe IRS Tax Debt.
IRS Tax Fraud Amount: If the amount of IRS Tax Debt you possible owe is very small (Say, less than $100 dollars) the auditor is likely to ignore the IRS Tax Fraud. IRS Criminal Investigations won't be wasted on chump change. But don't relax yet…
IRS Tax Fraud- Civil Penalties: If the amount of money you cheated the government out of is huge, the IRS will not let you get away unscathed. For small cases they will hit you with civil penalties and then send you to the Criminal Investigations Department.
-If you made a small mistake, a 20% penalty can be added to you bill. This is called an "Accuracy Related" mistake.
-If you owe more than $1,500 in additional taxes, a civil penalty of $300 or more can be added to the bill.
-The IRS pays special attention to people who omit details and people who are guilty of over deduction. This crime can bring about a 75% penalty. Plus, interest and penalties will be added on the taxes due.
Going too far: Did you go too far? Your case will be sent to the IRS's Criminal Investigations Division (CID). The CID gets cases from one of these four sources.
-IRS undercover operations
-Tips from law enforcement agencies (The IRS wants a cut of that illegal income!)
-Tips from citizens
-Referrals from other IRS divisions
The Big League: Think of the Criminal Investigation Division as the IRS's police force. The IRS agents who work in this department are known as "Special Agents." They are skilled detectives trained in IRS and FBI procedure. They will thoroughly investigate you, and you may be the last one to know it! Why? Because the Special Agent can question your friends, family members, coworkers, employees, and even your bank.
Doesn't Pay: As you can see, it doesn't pay to fool the IRS. This is a Federal Government Agency you're dealing with. They have employees trained in Federal Law and even FBI procedures. Don't get tempted to commit Tax Fraud. You'll get caught, it's only a matter of time.
