Being charged with federal tax fraud is a serious legal matter that can have long-lasting consequences on your personal and financial life. The Internal Revenue Service (IRS) and the Department of Justice (DOJ) do not take these charges lightly—prosecutions are often aggressive, and penalties can include substantial fines, interest on unpaid taxes, and even prison time. If you or someone you know is facing federal tax fraud charges, it’s critical to act quickly and strategically.
Here’s what you need to know and do next:
1. Understand The Charges
Federal tax fraud generally involves intentional wrongdoing with the aim of evading tax laws. Common examples include:
- Filing false tax returns
- Underreporting income
- Overstating deductions or expenses
- Failing to file returns
- Engaging in offshore tax evasion schemes
Charges can arise under multiple federal statutes, including 26 U.S.C. § 7201 (Attempt to Evade or Defeat Tax) and 26 U.S.C. § 7206 (Fraud and False Statements), each carrying serious penalties—often including felony charges.
2. Do Not Speak To Investigators Without An Attorney
You may feel tempted to explain yourself or “clear things up” with an IRS agent or federal investigator. Do not do this without legal representation. Anything you say can—and likely will—be used against you.
Even casual conversations or attempts to cooperate could end up strengthening the government’s case. The best move is to politely decline to speak and assert your right to legal counsel.
3. Retain A Skilled Federal Criminal Defense Attorney
Federal tax fraud is a complex, document-heavy area of law that requires an attorney experienced in both criminal defense and tax law. Your Tampa, FL criminal defense lawyer will:
- Analyze the evidence against you
- Help determine if the conduct was willful or merely negligent (a crucial distinction)
- Explore all possible defenses and legal strategies
- Communicate with the IRS and DOJ on your behalf
- Potentially negotiate a resolution or settlement
Time is of the essence, so do not delay in seeking representation.
4. Gather And Preserve Financial Records
While your attorney will take the lead in managing your defense, it is helpful to begin organizing all relevant documentation:
- Tax returns (filed or unfiled)
- Bank statements
- Business records
- Correspondence with accountants or the IRS
Avoid altering or destroying any documents, as this could lead to additional criminal charges like obstruction of justice.
5. Consider All Legal Defenses
Every case is unique, but common defenses to federal tax fraud include:
- Lack of willfulness – You must have intended to violate the law.
- Clerical or accountant errors – Mistakes by others may not be your criminal responsibility.
- Insufficient evidence – The burden is on the government to prove your guilt beyond a reasonable doubt.
- Statute of limitations – There are time limits on how long the government has to bring charges.
Your attorney will evaluate which defenses best apply to your case.
6. Prepare For A Potential Resolution
In some cases, it may be possible to resolve the matter without a trial. Options include:
- Plea agreements – Reducing charges or penalties in exchange for a guilty plea.
- Civil settlement – In some instances, the case may be resolved through civil penalties and restitution rather than criminal prosecution.
- Voluntary disclosure – If you come forward before being investigated, you may qualify for more lenient treatment under IRS disclosure programs.
Take Action Today
Federal tax fraud charges can feel overwhelming, but you don’t have to face them alone. The right legal strategy can mean the difference between prison time and a more favorable resolution. At Stechschulte Nell, we have extensive experience defending clients in complex federal investigations and prosecutions. If you’ve been charged—or believe you may be under investigation—contact our office immediately for a confidential consultation.
Your future is too important to leave to chance. Call us today.
