IRC § 7201 defines criminal tax fraud while IRC § 6663 deals with civil tax fraud. Civil tax fraud penalties are limited to monetary consequences and do not result in a criminal prosecution. Common civil infractions and their associated penalties include:
Criminal tax fraud can result in a significant period of imprisonment, among other penalties. For criminal tax fraud, the potential penalty is directly tied to the specific criminal charge you face. For example, some common crimes and punishments related to criminal tax fraud include:
The potential defenses against the criminal or civil charges are also different. For example, in a criminal proceeding, the focus may be on your intent to commit a tax crime. If you are found not guilty at the criminal level, the doctrine of collateral estoppel may be applied so that the same issues are not the subject matter of additional tax litigation.
Whether you are facing criminal or civil charges for tax fraud, experienced attorneys at Robert J. Fedor Esq., LLC can help. We can help build a legal strategy that is customized to provide you with an effective criminal tax defense in Chicago or to minimize your civil penalties. Contact our Chicago tax attorney to get started today.