While no one likes paying taxes, the refusal to do so can trigger criminal consequences. A criminal defense attorney in Fort Lauderdale can explain that the Internal Revenue Service will zealously pursue individuals and businesses that they suspect have committed tax fraud or tax evasion by failing to report their income or not paying taxes. A criminal defense attorney in Fort Lauderdale can explain the actions that may rise to the level of tax fraud and whether there are any potential defenses available in a particular case.

Failing to File a Tax Return

One of the most basic forms of committing tax fraud is failing to file a tax return. However, some individuals may not be required to file a tax return, such as those who made under a requisite amount of income during the previous year.

Failing to Report Income

Another common form of tax fraud is failing to report income earned. The federal and state government tax people based off of their reported earnings. If a person received cash or other income, he or she is usually required to report such income on his or her tax return. Failing to report income is even actionable when a person receives income through illegal conduct, such as drug dealing.

Overstating Deductions

Tax fraud can also be committed when a person intentionally overstates deductions in order to decrease their tax liability. For example, they may include dependents who are not really theirs, take unauthorized deductions or claim that they made a large donation to a charity that they never made.

Failing to Report Assets

Certain assets and the income generated from those assets must be included on a tax return. Through trusts and offshore bank accounts, some individuals may attempt to hide these assets in order to avoid taxation.

Due to the serious consequences of being convicted of tax fraud, it is critical that the defendant seek competent legal representation for his or her criminal defense.