Tax Mistakes: When Do They Become Illegal in Florida?

In Florida, there is a clear difference between making a mistake on your tax return and committing tax fraud. A simple mistake can usually be rectified by paying a financial penalty to the IRS. If you pay what you owe within an acceptable period of time, you are unlikely to face incarceration. If you engage in complex, fraudulent schemes that harm the American taxpayer, however, you may encounter criminal charges – including felonies. Whatever your situation might be, it is important to determine whether your tax issues will result in criminal charges. You can discuss this further alongside a Fort Myers tax fraud lawyer.

Ignorance of the Law Is Not a Defense 

The first thing you need to know is that ignorance of the law is not a viable defense strategy. You cannot simply claim that you were unaware of various tax laws and expect prosecutors to drop charges. If you engage in tax fraud, it doesn’t matter whether your actions were accidental or not. You will still face potential criminal charges.

Intent Is Important When It Comes to Tax Fraud 

While ignorance is not a valid defense, you may avoid criminal consequences for tax fraud if you lacked intent. In other words, you might avoid charges if you accidentally committed some kind of tax violation. The most severe tax fraud penalties are reserved for those who intentionally attempt to take advantage of the tax system, knowingly deceiving the IRS for personal gain. If you work with a tax fraud lawyer in Florida, they may attempt to establish that you lacked this “criminal intent.”

Dollar Amounts Matter

 In addition, the dollar value of your allegedly evaded taxes can affect your penalties. For example, you might face relatively minor penalties if you evaded a few hundred dollars worth of taxes. Penalties start to become more serious if you have evaded thousands of dollars in taxes. For evasions worth hundreds of thousands of dollars, felony charges are likely.

Tax Fraud Isn’t Always About Filing a False Return 

Aside from filing a false or fraudulent return, there are many other types of tax fraud to consider. The phrase “tax fraud” represents a broad category that could encompass many crimes. One example is payroll tax fraud, an offense that has become quite common during and after the Covid-19 pandemic. Another example is using a false Social Security number. You might also face criminal consequences for using someone else’s Social Security number for personal gain, such as a senior or disabled individual.

Find an Experienced Fort Myers Tax Fraud Lawyer 

If you’ve been searching for an experienced Fort Myers criminal defense lawyer, look no further than The Foley & Wilson Law Firm. Over the years, we have helped many residents accused of tax fraud. While federal criminal charges may be possible, they are far from guaranteed. With our assistance, you can review potential defense strategies and get started with an action plan. We have experience with defending against federal crimes in Fort Myers – so book a consultation today.

Sources: 

irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity

irs.gov/newsroom/tax-scamsconsumer-alerts