Dallas Tax Fraud Defense Attorneys

IRS tax fraud lawyers looking over documents

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The Internal Revenue Service (IRS) investigates all types of tax errors, including innocent mistakes and tax returns that may be intentionally fraudulent. As part of its investigation, the IRS looks for a wide range of possible tax-related offenses, including everything from failure to file taxes to falsifying or omitting information.

If you are under investigation, or if you have been charged with tax fraud, it can be a stressful and frightening time, with the possibility of hefty fines, prison, and many other consequences on your mind. That is why it is crucial to get help from an experienced Dallas IRS tax fraud attorney who will know how to protect your rights and defend you.

With more than 60 years of combined experience as criminal defense attorneys, including numerous trials in federal courts, Broden & Mickelsen, LLP can help you to get through this tough time.

To discuss your case and learn more about how we can assist in your tax fraud defense, call or reach us online today. Our initial consultations are free and confidential.

What Is Considered Tax Fraud?

Tax fraud occurs when a taxpayer fails to provide accurate and complete information to the IRS with a deceptive intent to minimize their tax liability. Tax fraud may include falsifying or underreporting income or overstating deductions.

When the IRS performs an investigation or conducts an audit, it is not necessarily seeking to incarcerate someone for the offense. The IRS understands that honest mistakes happen and, in some cases, a lack of financial resources to pay a tax debt lies behind the discrepancies they uncover.

When falsifying a tax return creates a situation where the taxpayer owes a relatively small amount of money to the IRS, the person will typically be given the opportunity to rectify the situation and be required to pay additional fines.

Simply failing to file a return can result in one year of jail time for each tax year that a return wasn’t filed. However, the IRS is more likely to work with you to put together a payment plan to settle your tax debt in this situation.

When you work with Broden & Mickelsen, LLP, we will thoroughly review the charges against you and explain the government’s evidence and all of your possible defenses.

Common Types of Tax Fraud Charges We Defend Against

The federal government investigates and prosecutes many types of tax fraud offenses. It helps to work with white-collar crime attorneys who have represented clients facing tax fraud charges in federal courts in Texas and several other states. We know how to protect our client’s rights, find flaws in the government’s case, and pursue the best possible outcome.

Some of the most common types of tax fraud that we defend against on behalf of our clients at Broden & Mickelsen, LLP include:

1.Individual tax evasion

Tax evasion involves the deliberate underpayment of taxes, including failure to pay altogether. Tax evasion might include transferring or hiding assets for the purpose of having a lower tax liability.

2.Business tax evasion

Business entities, too, can face liability for tax evasion. Claiming personal expenses as business expenses, failing to report business income, and overstating deductions are commonly prosecuted forms of business tax evasion.

3.Failing to report all income or underestimating income

A person must report all income to the IRS on their annual tax returns. An unexplained increase in net worth, excessive spending, or mysterious deposits in a bank account can all be red flags.

4.Using false receipts or fraudulent deductions

An individual can face a 20 percent penalty or possibly criminal charges for falsely reporting a tax deduction or for negligently or intentionally falsifying receipts to avoid paying higher taxes.

5.Hiding assets offshore

The IRS has ramped up efforts to catch taxpayers participating in offshore tax-avoidance schemes, which can lead to crimes charges, fines, and restitution.

6.Neglecting to report cash proceeds

Under the Bank Secrecy Act, banks in Dallas and throughout the country must report to the IRS any cash deposits exceeding $10,000. Individuals and businesses who receive cash payments above that figure must also report it.

7.Employment tax fraud

The federal government can pursue criminal charges against employers who withhold employment taxes but fail to turn over those funds to the IRS. Employers can also face criminal liability if they misclassify employees as independent contractors or try to avoid tax liability by paying employees in cash for that purpose.

8.Money laundering

Money laundering occurs when a person tries to hide an illegal source of income – or “dirty” money – by “cleaning” it through a series of transfers and transactions. The government takes money laundering seriously due to its potential ties to terrorism and drug trafficking.

9.Identify theft

This type of fraud occurs when someone takes another person’s personal information to claim benefits or file a fraudulent tax return.

“Mick represented my brother recently (2015-early 2016). I can’t thank him enough how he handled my brother’s case. Mick was very knowledgeable, experienced, professional, and responsive. Whenever I called or texted him for questions or concerns regarding my brother, he was very prompt to get back to me. If you need a criminal lawyer, he is THE ONE! Don’t waste your time & money on those lawyers who are only interested in your money without professionalism. My family and I have been grateful to him for his HELP!”
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”Being accused of a crime that I didn’t chit was one of the worst things to ever happen to me. Once accused of something you literally have to prove yourself innocent. Without a good lawyer like Mr. Mickelsen I would probably be on some type of probation. Mr. Mickelsen got my charges dismissed. I feel so vindicated. I can’t describe how happy I am with the outcome. Thank you so very much!!!”
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“We have our life back! Our son was accused of a crime he did not commit. Through the dedication and hard work of Mr. Mickelsen, our son was found Not Guilty. Mr. Mickelsen will forever be in our hearts with tremendous gratitude. If you are accused of something, you will be best represented and served by Broden & Mickelsen, LLP.”
Brad Holt

“My family were referred to Mick Mickelsen by another attorney. From day one we met Mick, we felt he knew what he is doing!! Most of all I appreciate his honesty, diligence, professionalism and his extent knowledge of the law! He is a great attorney with great tactics. What I also appreciated was that he always responded with timely manner, even when I texted him after hours! We won the case and We are grateful to him. Every penny spent on Mick was worth it! Highly recommend Mr. Mickelsen!!!!”
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Frequently Asked Questions About Tax Fraud Charges in Texas

Is tax fraud a federal offense?

Yes. Tax fraud is a violation of the U.S. Code. Most cases of tax evasion and other forms of federal tax fraud are prosecuted as a violation of 26 U.S.C. § 7201. A conspiracy could also be charged under 18 U.S.C. § 371. The IRS is the federal agency that investigates tax crimes.

What are the signs of tax fraud?

Some “red flags” that may lead to an IRS investigation include failing to file tax returns, large numbers of cash deposits or deposits over $10,000, distributing profits to imaginary individuals or business partners, or using unreported foreign bank accounts.

Do you need an attorney if the IRS is investigating you?

A conviction for tax fraud can carry serious consequences, including fines, prison time, and the collateral effect that a conviction could have on your financial security as an individual or business. A lawyer will protect your rights and work hard to avoid or mitigate those consequences.

What Is the Difference Between Criminal Liability and Civil Liability in Tax Fraud Cases?

The main difference between criminal and civil liability for tax fraud lies in the burden of proof. In a criminal tax fraud case, the government must prove its case beyond a reasonable doubt. In a civil case, the burden is slightly lower. The government must establish its case with clear and convincing evidence.

Another significant difference lies in the statute of limitations, or the period in which the government must file its case against you. While the government must file charges within six years from the alleged fraud in criminal cases, no time limit applies to civil tax fraud cases. Regardless of whether you face civil or criminal liability, you should seek assistance from an experienced Dallas tax fraud lawyer.

Penalties for a Tax Fraud Conviction

If you are found guilty of tax fraud, you could face criminal and civil consequences, including:

Civil tax fraud penalty of up to 75 percent of the tax dues (in addition to any back taxes, interest, and other penalties)
Fraudulent failure to file penalty of 15 percent of the unpaid tax each month (in contrast to the regular penalty of 5 percent)
Criminal punishment such as prison for up to five years and a fine of $250,000 ($500,000 for corporations) for an offense such as evading paying taxes

Depending on the circumstances, a taxpayer could face other consequences such as a trust fund recovery penalty equal to 100 percent of the trust fund’s unpaid taxes, or the penalty for willful failure to file foreign bank account reports (FBARs).

Common Defenses to Tax Fraud Allegations

Due to the severe consequences a person or company can face for tax fraud, it is crucial for taxpayers facing charges to explore every possible defense. Some of the most common defenses are:

Lack of jurisdiction – If the government failed to file a criminal tax fraud charge within the statute of limitations period, for instance, the court would lack authority to rule in your case.
Insufficient evidence – A taxpayer can make an honest mistake or fail to pay taxes due to neglect rather than because they were knowingly and willfully breaking the tax laws.
Miscalculation – In some cases, taxpayers can show that either the government made a mistake with the amount it claims the taxpayer underpaid, or the taxpayer can provide information to show it was the proper amount.
Voluntary disclosure – Through the IRS Voluntary Disclosure and Offshore Voluntary Disclosure programs, taxpayers can self-report tax evasion. Although the taxpayer may still face a high fine, the IRS may stop criminal prosecution.

How Our Dallas Tax Fraud Lawyers Can Help You

No criminal defense law firm can promise a result. However, when you work with the Dallas tax fraud defense lawyers at Broden & Mickelsen, LLP, on your tax fraud defense, we can promise that we will:

Give you a thorough, honest assessment of your case. We can discuss the charges and evidence against you and give you an outline of how we would defend you by using our team approach to representing clients.
Conduct an exhaustive investigation. We work with a variety of investigators to track down the facts and evidence in our clients’ cases. We believe that a thorough investigation and meticulously prepared defense make a difference for our clients.
Aggressively defend you. Whether we are filing pleadings, dealing with prosecutors in plea negotiations, or presenting your case to a judge or jury, we will be aggressive in our defense of you.
Keep you informed. At all stages of a case, we stay in close contact with our clients and return phone calls promptly. We often serve as counselors and advisers in addition to being lawyers, especially when a client is facing the criminal justice system for the first time.

We take on the most challenging federal, state, and appellate cases. We are board-certified in both criminal law and criminal appellate law by the Texas Board of Legal Specialization. We will be prepared to give your case a thorough review and begin work on your defense right away.

Get Help from an Experienced Dallas Tax Fraud Defense Lawyer Today

If you face criminal or civil liability involving tax fraud or tax evasion, we can help you fight the charges. As Dallas IRS tax fraud lawyers, we can use our team approach to defending our clients to seek the best possible outcome for you.

To learn more, call or reach us online today at Broden & Mickelsen, LLP.

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