Tax fraud is a serious offense that can have drastic consequences. According to the IRS, around 2550 financial crimes took place in 2022 involving over $31 billion. There was a 90.6% conviction rate on these cases – revealing the government’s determination to crack down on financial crimes. It is important to understand what constitutes tax fraud and take the necessary steps to prevent it from happening to you.
Whether you regularly file a business return or you only file a personal tax return for you or your family, you can avoid legal issues by ensuring you understand tax fraud and you know how to comply with the law. Here is our complete guide to tax fraud, along with some steps you can take to avoid facing these unpleasant charges. In this blog, we will cover what tax fraud is, types of tax fraud (including tax evasion, tax negligence, and tax avoidance), penalties for tax fraud, how to avoid mistakes that lead to charges, and what to do if you’re facing these charges.