- Understating income,
- Maintaining inadequate records,
- Implausible or inconsistent explanations of behavior,
- Concealment of income or assets,
- Failing to cooperate with tax authorities,
- Engaging in illegal activities,
- Lack of credibility of the taxpayer's testimony,
- Filing false documents,
- Failing to file tax returns,
- Failing to make estimated payments, and
- Dealing in cash.
May 13, 2016
US EXPATRIATES - HOW DO YOU KNOW WHEN YOUR ARE COMMITTING TAX FRAUD SUBJECT TO CIVIL AND CRIMINAL PENALTIES?
The Courts have developed a nonexclusive list.of factors, or "badges of fraud," that demonstrate fraudulent intent with respect to US income taxes (or the failure to pay those taxes). If your situation involves some of the following you are at risk. The civil and criminal penalties can be extreme
A taxpayer's background, level of education, and relative business sophistication are also rely evant considerations as they inform the court about the taxpayer's ability to understand the transactions and issues at hand.
If you wish to discuss your situation and find ways out of potential expensive and criminal situations we can help. As an attorney our consultations provide the complete confidentiality and privacy of "attorney client privilege." Emailfor phone phone consultation with Don D. Nelson, who is a an admitted attorney in US Tax Court at email@example.com.