Florida Probate Attorney

White Collar Tax Crimes

Posted on 28. Jan, 2010 by Admin in Uncategorized

Prosecution for tax crimes usually broaden into prosecution of other types of monetary crimes.  These added monetary fines are considered “white collar” crimes and can involve criminal violations of antitrust laws, banking laws, and security laws.

Tax Fraud

The largest portion of investigations performed by the IRS is centered on federal tax fraud.  Federal tax fraud is comprised of failure to file a return, supply information, to collect or pay tax, tax evasion, and/or making falsified statements.  Some examples of federal tax fraud consist of:

• Purposely underreporting or leaving out income,
• Exaggerating the amount of deductions,
• Maintaining more than one set of books,
• Falsifying any entries in books or records
• Falsely claiming personal expenses as business expenses,
• Reporting fake deductions, and
• Hiding or transferring profits or assets.

Tax Evasion

An attempt any type of tax payer who purposely deceives the government to avoid paying taxes is considered tax evasion.  Tax evasion most often involves the taxpayer intentionally misrepresenting or concealing the honest status of their monetary dealings to the IRS to decrease their tax responsibilities.  This is done by false tax reporting methods such as understating income, profits and/or gains than truthfully received; keeping more than one set of books or reports; exaggerating deductions; and/or concealing funds in illegal foreign accounts.

Bank Fraud

When someone uses illegal measures to receive money, credits, securities, or any other monetary property controlled by a financial institution is committing bank fraud.  Examples of bank fraud include:

• Stolen, fake or misrepresented checks,
• Rogue traders,
• Falsified loans were loan applications, or
• The act of money laundering.

Embezzlement

An individual who knowingly conceals any money, assets or other properties that have been entrusted to them is committing embezzlement.  In embezzlement usually consists of falsifying records in order to hide the illegal actions.  An additional paid is to make a fake vendor account and supply fake invoices to the business that is being embezzled.  Many of the most intricate and lucrative form of embezzlement include financial schemes where massive returns to early investors are paid out of money acquired from later investors who have been deceived into believing they will receive access to a large return.

Financial Fraud

When dealing with financial fraud there are a variety of crimes focusing on defrauding a person, business, or financial institution out of funds, securities, cash, and any other assets.  This includes:

• Accounting Fraud
• Embezzlement
• Bank Fraud
• Electronic Funds Transfer Fraud
• Wire Fraud

Accounting Fraud

Any employee of an entity that embezzled or hides money is committing accounting fraud.  This particular crime involves intricate techniques for the abuse and misdirection of funds, over exaggerating proceeds, falsifying expense, exaggerating the worth of company resources, and/or misreporting the existence of liabilities.

For additional information: Please visit Thorn Law Group. Serving clients in Virginia and nationwide.

Tags: accounting fraud, tax evasion, virginia tax lawyer