Tax Fraud in Wake County

Let Our Raleigh Fraud Attorneys Review Your Case

The IRS and other taxing authorities use audits and other non-criminal tools to address unintentional taxpayer errors. Tax fraud, on the other hand, is the intentional and willful attempt to evade income tax laws or defraud a tax collecting agency. Authorities could levy tax evasion charges in any of the following situations:

  • Preparing and filing a false return
  • Making false claims
  • Intentionally refusing or failing to file an income tax return
  • Willfully failing to pay lawfully due taxes
  • Deliberately failing to report all income sources

In many situations, defendants face both federal and state charges, because of issues with both federal and state returns in the same tax year.

If tax investigators close in and recommend criminal charges, do not panic. Just talk to one of our highly-skilled Raleigh fraud attorneys. Federal and state prosecutors are both very aggressive, because the laws are quite harsh and these agencies have almost unlimited resources. So, we work hard to defend your reputation and your rights.

North Carolina Penalties

The Tarheel State imposes extremely high financial penalties on unpaid taxes. Per North Carolina General Statutes § 105-130, a basic 5 percent penalty occurs each month, up to a maximum 25 percent of the balance due. A 10 percent late payment penalty applies as well, at least in most cases. 

There’s more. The law imposes an additional 20 percent “collection assistance fee” on any penalties, interest, and taxes not paid within 90 days of the due date. Finally, a conviction means an additional 50 percent fraud penalty. At Sandman, Finn & Fitzhugh, we fight these penalty impositions and also pursue appeals if necessary.

Federal Penalties

The potential penalties in federal tax fraud cases are even more severe. Federal tax evasion is a felony punishable by up to five years in prison, a fine of up to $250,000 for individuals and $500,000 for corporations, and court costs. The penalties for making a false statement are almost exactly the same, except the maximum prison term is three years.

Talk to Us About Your Case Today

A federal or state tax fraud conviction could create a significant financial hardship for you and your family and put you behind bars for an extended period of time. Taxpayers who rely on the experienced Raleigh criminal defense attorneys at Sandman, Finn & Fitzhugh, Attorneys at Law, have an excellent chance to avoid some or all of these harsh consequences. Contact us at (919) 887-8040 or fill out our online form to schedule a free case consultation today.