IRS Tax Evasion & Tax Fraud Crimes

A Review for South Carolina Criminal Tax Lawyers, Attorneys, & Law Firms & South Carolina Consumers

Tax fraud crimes in South Carolina and the United States are on the rise. SC consumers and their white
collar criminal defense SC tax attorneys & SC tax lawyers need to be aware of criminal penalties for
committing federal tax crimes.

SC white collar criminal defense tax attorneys and SC tax lawyers need to be aware of the circumstances
of the applicable federal tax fraud criminal laws in order to properly assess potential criminal liability of
their individual and corporate clients. Common federal IRS tax fraud allegations include failure to pay
taxes, submitting false information or fraudulent income tax returns, and directing another person to
prepare and/or submit false information or fraudulent tax returns. SC Consumers and their white collar
criminal defense tax lawyers, attorneys and law firms need to know what laws apply to conduct which
violates IRS criminal laws and the applicable criminal penalties. A SC taxpayer should never discuss his
or her potential criminal conduct with an IRS investigator, even if he thinks that he has nothing to hide
and has done nothing wrong. Interviews can be misinterpreted and a taxpayer’s words can be
misconstrued or twisted and eventually used against him and may end up as additional charges.

Often the IRS charges a taxpayer with making false statements in violation of 18 USC § 1001 when the
taxpayer tries to explain his position to the IRS Revenue Officer or Special Agent. Whenever a taxpayer
may have committed a tax fraud, not filed his income tax returns, not paid his income taxes, or filed
fraudulent returns or documents to the IRS, a criminal attorney should be hired and should
communicate with the IRS special agents. The Internal Revenue Service Criminal Investigative Division
(IRS-CID) conducts criminal tax investigations. Some signs that a potential IRS indictment or charge is
forthcoming can include an IRS Revenue Officer who has been pressing you for payment abruptly
disappears and will not return your phone calls; an IRS Revenue Agent who has been auditing your tax
returns abruptly goes silent; your bank receives an IRS summons or a grand jury subpoena issued at the
request of the U.S. Attorney’s Office; or your CPA receives a federal grand jury subpoena to testify. A SC
Criminal Tax Attorney or Lawyer should be immediately retained at this time.

The following are the major IRS statutes of which the consumer and criminal tax lawyers must be aware.

Title 26 USC § 7201 -- Attempt to evade or defeat tax

Any person who willfully attempts to evade or defeat any tax imposed by this title or the payment
thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction
thereof:

Shall be imprisoned not more than 5 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both, together with the costs of prosecution
Title 26 USC § 7202 -- Willful failure to collect or pay over tax

Any person required under this title to collect, account for, and pay over any tax imposed by this title
who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to penalties
provide by the law, be guilty of a felony:

Shall be imprisoned not more than 5 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both , together with the costs of prosecution

Title 26 USC § 7203 -- Willful failure to file return, supply information, or pay tax

Any person required under this title to pay any estimated tax or tax, or required by this title or by
regulations made under authority thereof to make a return, keep any records, or supply any
information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or
supply such information, at the time or times required by law or regulations, shall, in addition to other
penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof:

Shall be imprisoned not more than 1 years

Or fined not more than $100,000 for individuals ($200,000 for corporations)
Or both, together with cost of prosecution

Title 26 USC § 7206(1) -- Fraud and false statements

Any Person who… (1) Declaration under penalties of perjury - Willfully makes and subscribes any return,
statement, or other document, which contains or is verified by a written declaration that is made under
the penalties of perjury, and which he does not believe to be true and correct as to every material
matter; shall be guilty of a felony and, upon conviction thereof;

Shall be imprisoned not more than 3 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both, together with cost of prosecution

Title 26 USC § 7206(2) -- Fraud and false statements

Any person who…(2) Aid or assistance - Willfully aids or assists in, or procures, counsels, or advises the
preparation or presentation under, or in connection with any matter arising under, the Internal Revenue
laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material
matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized
or required to present such return, affidavit, claim, or document; shall be guilty of a felony and, upon
conviction thereof:

Shall be imprisoned not more than 3 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both, together with cost of prosecution
Title 26 USC § 7212(A) -- Attempts to interfere with administration of Internal Revenue laws

Whoever corruptly or by force endeavors to intimidate or impede any officer or employee of the United
States acting in an official capacity under this title, or in any other way corruptly or by force obstructs or
impedes, or endeavors to obstruct or impede, the due administration of this title, upon conviction:

Shall be imprisoned not more than 3 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both

Title 18 USC § 371 -- Conspiracy to commit offense or to defraud the United States

If two or more persons conspire either to commit any offense against the United States, or to defraud
the United States, or any agency thereof in any manner or for any purpose, and one or more of such
persons do any act to effect the object of the conspiracy, each:

Shall be imprisoned not more than 5 years

Or fined not more than $250,000 for individuals ($500,000 for corporations)
Or both

CONCLUSION

South Carolina consumers must have an understanding of the basics of tax fraud and tax evasion in
order to properly assess potential criminal liability if they have been involved in a tax fraud/evasion
scheme and in order to protect themselves if they have been the victim of a tax fraud/evasion scam.
South Carolina white collar criminal defense attorneys must understand the basics of tax evasion in
order to adequately represent clients who have been charged or indicted with tax evasion or tax fraud
violations. A white collar tax fraud or tax evasion criminal conviction can have life altering consequences
for those defendants convicted of the same. A defendant who is charged or indicted with the federal
crime of tax fraud should consult with a SC criminal lawyer who is knowledgeable about the substantive
law regarding federal tax evasion/fraud as well as the applicable federal sentencing guidelines.

© 2010 Joseph P. Griffith, Jr.

Joseph P. Griffith, Jr.
SC Tax Fraud Criminal Attorney
SC Tax Evasion Lawyer
SC Criminal Defense Tax Crimes Law Firm
Joe Griffith Law Firm, LLC
7 State Street
Charleston, South Carolina 29401
(843) 225-5563
http://www.joegriffith.com

South Carolina Attorney Joe Griffith is a former SC federal prosecutor who handles IRS tax fraud cases,
federal criminal tax evasion cases, IRS tax fraud scheme cases, failure to file income tax return cases, in
South Carolina and the United States.

© 2010 Joseph P. Griffith, Jr.