Miami criminal defense attorney
Law Offices of
    David M. Garvin, P.A.
200 South Biscayne Blvd.
Suite 3150
Miami, Florida 33131
Tel.: (305) 371-8101
David M. Garvin Criminal Tax Attorney
Tax Fraud Lawyer

Miami Criminal Tax Attorney

TAX FRAUD RELATED

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§7201- Attempt to evade or defeat tax

§7201- Attempt to evade or defeat tax:


(a) Prohibitions
     (1) Federal employees and other persons It shall be unlawful for -

       (A) any officer or employee of the United States, or (B) any person described in section 6103(n) or an officer or employee of any such person, willfully to inspect, except as authorized in this title, any return or return information.

    (2) State and other employees It shall be unlawful for any person (not described in paragraph (1)) willfully to inspect, except as authorized in this title, any return or return information acquired by such person or another person under a provision of section 6103 referred to in section 7213(a)(2). (b) Penalty (1) In general Any violation of subsection (a) shall be punishable upon conviction by a fine in any amount not exceeding $1,000, or imprisonment of not more than 1 year, or both, together with the costs of prosecution. (2) Federal officers or employees An officer or employee of the United States who is convicted of any violation of subsection (a) shall, in addition to any other punishment, be dismissed from office or discharged from employment. (c) Definitions For purposes of this section, the terms ”inspect”, ”return”, and ”return information” have the respective meanings given such terms by section 6103(b).

Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.
§7201- Attempt to evade or defeat tax

§7202- Willful failure to collect or pay over tax

§7202- Willful failure to collect or pay over tax:


     Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution.
§7202- Willful failure to collect or pay over tax

§ 7203 - Willful failure to file return, supply information, or pay tax

§7203- Willful failure to file return, supply information or pay tax:

     Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.

     In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure.

     In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting ”felony” for ”misdemeanor” and ”5 years” for ”1 year”.
§7203- Willful failure to file return, supply information or pay tax

§7204- Fraudulent statement or failure to make statement to employees

§7204- Fraudulent statement or failure to make statement to employees:


     In lieu of any other penalty provided by law (except the penalty provided by section 6674) any person required under the provisions of section 6051 to furnish a statement who willfully furnishes a false or fraudulent statement or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6051, or regulations prescribed thereunder, shall, for each such offense, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
§7204- Fraudulent statement or failure to make statement to employees

§7205- Fraudulent withholding exemption certificate or failure to supply information

§7205- Fraudulent withholding exemption certificate  or failure to supply information:

     a) Withholding on wages Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under section 3402, shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.

     (b) Backup withholding on interest and dividends If any individual willfully makes a false certification under paragraph (1) or (2)(C) of section 3406(d), then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
§7205- Fraudulent withholding exemption certificate  or failure to supply information

§7206- Fraud and false statement

7206- Fraud and false statement:

     Any person who
          (1) Declaration under penalties of perjury Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or

          (2) Aid or assistance Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or

          (3) Fraudulent bonds, permits, and entries Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or

          (4) Removal or concealment with intent to defraud Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by this title; or

          (5) Compromises and closing agreements In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully -

               (A) Concealment of property Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or

               (B) Withholding, falsifying, and destroying records Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax; shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 3 years, or both, together with the costs of prosecution.

§7207- Fraudulent returns, statements or other documents

§7207- Fraudulent returns, statements or other documents:

  
  Any person who willfully delivers or discloses to the Secretary any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both. Any person required pursuant to subsection (b) of section 6047 or pursuant to subsection (d) of section 6104 to furnish any information to the Secretary or any other person who willfully furnishes to the Secretary or such other person any information known by him to be fraudulent or to be false as to any material matter shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both.
§7207- Fraudulent returns, statements or other documents

§7212 - Attempts to interfere with administration of internal revenue laws

§ 7212 - Attempts to interfere with administration of internal revenue laws:

(a) Corrupt or forcible interference

     Whoever corruptly or by force or threats of force (including any threatening letter or communication) endeavors to intimidate or impede any officer or employee of the United States acting in an official capacity under this title, or in any other way corruptly or by force or threats of force (including any threatening letter or communication) obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title, shall, upon conviction thereof, be fined not more than $5,000, or imprisoned not more than 3 years, or both, except that if the offense is committed only by threats of force, the person convicted thereof shall be fined not more than $3,000, or imprisoned not more than 1 year, or both. The term “threats of force”, as used in this subsection, means threats of bodily harm to the officer or employee of the United States or to a member of his family.

(b) Forcible rescue of seized property

     Any person who forcibly rescues or causes to be rescued any property after it shall have been seized under this title, or shall attempt or endeavor so to do, shall, excepting in cases otherwise provided for, for every such offense, be fined not more than $500, or not more than double the value of the property so rescued, whichever is the greater, or be imprisoned not more than 2 years.
§ 7212 - Attempts to interfere with administration of internal revenue laws
IRS Criminal Tax Investigations


The IRS has a special unit dedicated to investigating potential criminal violations of the Internal Revenue Code and related financial crimes including money laundering, currency crimes, antitrust violations and Bank Secrecy Act violations. This unit, the IRS Criminal Investigation Division (“CI”) is composed of Special Agents who are expertly trained financial investigators. CI Special Agents employ law enforcement techniques such as wiretaps, search warrants and undercover operations. These agents aggressively conduct exhaustive, in-depth investigations into individuals and businesses to uncover tax and financial crimes, including:

General Tax Fraud Washington, DC Criminal Tax Attorney
    Return Preparer Fraud
    Questionable Refunds
    Abusive use Trusts
    Frivolous Filer/Non-Filer
    Employment Tax Fraud
    Voluntary Disclosures
    Undisclosed Offshore Accounts
    Excise Tax Fraud

CI’s conviction rate is one of the highest in federal law enforcement.  Not only do the courts hand down substantial prison sentences in such cases, but those convicted must often pay fines civil penalties and interest in addition to any back taxes owed.
 
 
                                                                  9.5.11.6.1.3  (11-01-2011)      Court Appeals

While income tax investigations may be petitioned before the U.S. Tax Court without prepayment of the taxes, excise tax investigations of interest to CI generally are not contested before the U.S. Tax Court (see subsection 9.5.11.6.2). Challenges to such excise tax investigations generally are made to either the U.S. Court of Claims or the U.S. District Court, and then only upon prepayment of some amount of outstanding tax.



                                                           9.5.11.6.3  (09-09-2004)      Excise Tax Investigations

Excise tax returns, unlike those for income taxes, do not lend themselves to analysis to determine the possible existence of tax violations. The information contained in quarterly excise tax returns on Form 720, Quarterly Federal Excise Tax Return, is limited to the kind of tax, the gross tax, the credit for overpaid tax in prior returns, and the net tax due.

Excise tax investigations related to false or fraudulent returns usually result from referrals following field audits of taxpayers’ books and records. As violations applicable to excise taxes often occur simultaneously with income tax offenses, field audits conducted by the operating division in income tax matters often disclose violations with respect to excise taxes.
    Referrals in such investigations often relate to both excise and income tax violations. Investigations of offenses involving willful failure to file excise tax returns, or willful failure to collect and pay over excise taxes, are usually based upon referrals from the civil operating divisions.

Excise tax violations are also disclosed through surveys conducted by CI and from information obtained by special agents during his/her investigation of income tax offenses. As most excise tax offenses are committed in conjunction with income tax violations, investigation of both types of violations usually arise from the same sources.


                           9.5.11.6.4  (09-09-2004)     Techniques of Excise and Income Tax Investigations Compared

Although the criminal penalties for most excise tax violations are imposed by the same Title 26 sections that relate to income taxes, the nature of the evidence needed to sustain prosecution of excise tax violations differs in many respects from that required in income tax investigations.

Excise tax is based on specifically enumerated articles or services, whereas income tax is based strictly on income.

For this reason, the established methods for determining income in income tax investigations may be inadequate to sustain a criminal prosecution for evasion of the excise tax on specifically enumerated articles or services.

Under certain circumstances the specific item method of proving income may be effectively used in excise tax investigations, especially if adequate records are maintained by the taxpayer.

Any other method of proving income may be used if the circumstances are such that the evidence developed will serve to establish or buttress proof of a violation of the excise tax on the specifically enumerated articles or services involved.

In general, the investigative techniques applicable to income tax investigations may be used in excise tax investigations.


                                                 9.5.11.6.5  (11-01-2011)    Jeopardy Assessment in Excise Tax Investigations

Title 26 USC §6862 provides that if the secretary believes the collection of any tax (other than income tax, estate tax, gift tax, and the excise taxes imposed by Chapters 41, 42, 43, and 44) under any provision of the Internal Revenue laws will be jeopardized by delay, he/she should, whether or not the time otherwise prescribed by law for making a return and paying such tax has expired, immediately assess such tax (together with all interest, additional amounts, and additions to the tax provided for by law).


                                                9.5.11.6.6  (09-09-2004)    Criminal Penalties for Excise Tax Violations

Criminal penalties for most violations of excise taxes are imposed by the same USC sections that relate to income taxes and cover offenses such as:

willful failure to file a return, pay tax, supply information, or keep records

willful failure to account for, collect, and pay over a particular tax

willful attempts to defeat the tax in any manner

The USC also provides specific penalties that are only applicable to the various excise taxes. (The various criminal penalties are enumerated in IRM 9.1.3, Criminal Statutory Provisions and Common Law.) For example, 26 USC §7215 and 26 USC §7512, relate to offenses involving collected taxes and cover non-compliance with an official notice to collect and deposit "trust fund" taxes.


            The Internal Revenue Service (IRS) is a bureau of the United States Department of Treasury charged with administering and enforcing the internal revenue laws.  In 2005 alone, the IRS Criminal Investigation Division (CID) initiated 4,269 investigations.  These investigations were for: tax fraud, insurance fraud, excise tax fraud, gaming, abusive return preparers, corporate fraud, money laundering schemes, and narcotics enforcement.  Sixty-seven percent of those investigations resulted in a recommendation for prosecution.  Fifty percent of those recommended prosecutions resulted in criminal convictions.
          
An IRS investigation, especially a CID investigation, is a very serious matter that requires appropriate representation.  An IRS criminal investigation is different than an audit.  In an audit, the IRS is attempting to determine if you have correctly reported your tax liability.  In a criminal tax investigation, the government is preparing a case so that the U.S. Attorney can prosecute you and possibly put you in prison. The IRS often will contact people directly by surprise and without prior notice.  Under no circumstance should you talk with or attempt to deal, in any way, with the IRS. You are not required to answer any questions or help the IRS to prosecute you. The IRS is not there to help you.  Anything you say to the IRS will be used against you.  You cannot take back what has already been said.

CID investigators are federal agents trained in law enforcement and often are certified public accountants.  When a CID agent completes an initial investigation and recommends prosecution of an individual, there are often two levels of review by IRS attorneys before approval of prosecution.  After the IRS approves prosecution at its highest level, the case is forwarded to the United States Department of Justice Tax Division in Washington, DC, where federal prosecutors, specializing in criminal tax violations, review the case and decide whether or not to authorize prosecution. If the Department of Justice Tax Division in Washington approves prosecution, the case is sent to the local United States Attorney's Office with the direction that the individual or individuals be indicted and prosecuted for the offenses alleged.

Because the IRS uses a multi-tiered prosecution approval process, having a strong advocate to help you through this process is crucial.  Early representation is crucial.  Having an advocate who can help persuade the IRS not to prosecute you at an early stage is much better than having to defend a case in front of a federal jury.

The IRS has tremendous resources and vigorously prosecutes criminal tax cases.  The consequences of a criminal tax violation are severe.  Do not take a chance when it comes to your representation.  Our firm can help you through this process.

Through our extensive white collar criminal defense experience, the law offices of David M. Garvin, P.A. has collaborated with specialists in other fields to defend those accused of tax-related and other economic crimes.  These relationships allow Heurlin Sherlock Laird to present a thorough defense in an efficient and cost-effective manner.  This collaboration is important given the increasing emphasis on federal and state cooperation in investigation and enforcement.
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Tax Attorney David M. Garvin, P.A.

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Florida Bar Board Certified Tax Lawyer
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David M. Garvin, P.A.
200 South Biscayne Blvd Suite 3150 Miami, Fl. 33131
Tel.: (305) 3718101
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