Understanding what triggers an IRS criminal investigation can be a crucial bit of know-how. It’s not just about filling out your tax return; it’s the subtleties in your financial behavior that might wave red flags at the IRS, signaling possible fraud or evasion. The IRS Criminal Investigation Division takes these cues seriously as they patrol for breaches in federal tax laws, so it’s important to know when the IRS pursues criminal charges and how to avoid that scenario in the first place. In this read, you’ll get to grips with how unusual bank account activities could land you on their radar a ..read more

The Internal Revenue Service (IRS) has the right to audit a taxpayer’s finances at any time and if they suspect evidence of criminal activity, they can open up a parallel criminal investigation. The process of an IRS parallel criminal investigation is daunting for anyone involved and there are serious potential consequences you should be aware of. As taxpayers, it’s important to understand the basics when it comes to dealing with such investigations so that you know what kind of power the IRS ultimately holds over your financial situation. In this post, we’ll break down how these investigati ..read more

Key Takeaways: Tax-related identity theft is when a bad actor uses a taxpayer’s Social Security number or other personal information to file a fraudulent tax return Suspected identity theft cases made up around 50% of all suspended returns in 2022 The Automated Underreporter (AUR) is an IRS unit that identifies discrepancies in tax returns and uncovers issues like identity theft Several AUR changes in 2022 impacted the process for identity theft issues Eight ways to avoid tax-related identity theft: Be careful with your Social Security number Improve password protection Look out for phishing ..read more

Key Takeaways: Tax fraud, tax evasion, and willfully failing to file may lead to jail time and high fines The IRS won’t send you to prison if you forget to file your tax return one year or you make a mistake on your tax return Five ways to avoid legal problems: Don’t miss any filing deadlines Pay the tax you owe right away Check everything for mistakes Always be honest Talk to a tax attorney Many taxpayers worry that making a tax mistake can lead to serious penalties or prison time. As long as you do everything honestly, you have little to worry about. You may still be wondering, however ..read more

The IRS requires you to file a tax return if you earned over the standard deduction for your filing status during the tax year. The standard deduction changes every year, and as of tax year 2022, it is $12,950 for a single filer and $25,900 for a married couple filing jointly.  You also must file if you had more than $400 in net self-employment earnings or you owe any special tax, such as the alternative minimum tax, the additional tax on a qualified retirement account, Social Security or Medicare taxes on tips you didn’t report to your employer, household employment taxes, or recapture t ..read more

Key Takeaways: Underreported income includes any earnings subject to tax that are left off of a tax return The largest portion of the tax gap tracked by the IRS is made up of underreported income Taxpayers may underreport income due to a desire to avoid paying tax or simple mistakes What to do if you receive a CP2000 notice: Read the notice carefully Respond right away Submit documentation if you disagree Look for mistakes on other returns Many taxpayers don’t report their entire income on their tax returns, even though they may file on time. This is called underreporting, and it’s the cau ..read more

Business accountants help you run your business by keeping track of many things. That list includes income and expenses, helping you avoid accounting fraud, providing financial information to aid in making decisions, and ensuring that your business is in compliance through financial reporting to the United States Security and Exchange Commission (SEC).  Those who want their businesses to run smoothly must keep their financial records up to date and clean, or their companies could end up on the wrong side of an accounting fraud lawsuit. The financial statements generated by your records ..read more

The Internal Revenue Service Criminal Investigation Division (IRS-CI) serves the United States’ public by scrutinizing potential criminal activity of the Internal Revenue Code and other related financial crimes. These investigations aim to ensure compliance with tax law and provide the public with confidence in the tax system.  If you find yourself facing an IRS criminal investigation, it is essential to understand what you’ll be going up against. This guide will detail how the IRS process looks, what constitutes a criminal act, and what to do if you find yourself on the wrong side of the ..read more

The IRS is no stranger to taxpayers’ avoidance of tax liability. From the rich and famous to a local donut shop owner, many continue to face the serious consequences of tax evasion. It is no secret that no one likes to pay their taxes, but it is a necessary responsibility that must be met in order to avoid trouble with the federal government. Indeed, tax fraud has existed since the inception of the IRS. There are many creative ways individuals and entities attempt to lower their tax liability each year. Most of these actions are legal and acceptable tax avoidance strategies base ..read more

The number of Americans that are not paying their taxes is stunning. Did you know that 1 in 30 taxpayers fail to file their taxes each year? This is not an insignificant amount. According to the same source, it adds up to approximately 14 million taxpayers. This group owes over $130 billion in penalties and taxes to the United States government. Just because you owe money to the IRS does not mean you have committed a felony. Read on for a comprehensive guide explaining what constitutes a felony. Explore the topic of tax fraud as well as other penalties the IRS may ..read more