My Accountant Messed Up On My Taxes, Now I’m Being Accused Of Tax Fraud.
Every once in a while there is someone out there who decides to skirt the law and be a little over generous with their deductions, but for the most part tax fraud is under control, right? Sorry, Mr. Tax Payer, the answer is a resounding no. According to NBC News, the cost of tax refund fraud is expected to hit $21 billion by 2016, up from $5.6 billion in 2013. It is true that the IRS has limited resources to catch offenders due to antiquated systems and the increasing volume of returns, but if caught, violators will get the IRS’s full attention.
It was a minor infraction; can’t I just pay what I owe?
The simple answer is no. According to IRS code 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” (i)
My accountant made an error; am I liable?
It can be difficult in many cases to prove that an error on your taxes was not intentional. An accountant’s job is to file your taxes according to the tax code based on the information you supply. If indeed it is the accountant’s error, there may be grounds to dismiss any accusations against you, but it is in your accountant’s best interest to protect him or herself as well. Securing outside counsel is not only a good precautionary measure, but also a highly advisable action. IRS auditors are very selective as to the cases they take on due to the high volume they receive, so it stands to reason that they will be taking your case seriously, and so should you.
Kansas City Criminal Defense Attorneys
The attorneys at Paul Morrison Law know what to do when defending clients in identity theft, embezzlement and fraud cases. To arrange a consultation today, call 913-780-6666 or contact us online.
(i) Related Statutes and Penalties – General Fraud. (n.d.). Retrieved February 15, 2015, from http://www.irs.gov/uac/Related-Statutes-and-Penalties—General-Fraud
