Uncovering the Truth: How a Tax Fraud Lawyer Can Use Evidence to Build Your Defense

Mackenzie Laidlaw
January 16, 2024
Fact checked by
Munish

KEY TAKEAWAYS
A tax fraud lawyer examines your financial records.
They build a defense is interviewing witnesses.
Forensic accounting is a primal part of a tax fraud defense since it involves investigating financial records to find any errors or inconsistencies.
Interactions with professionals form a decisive part of your defense.
IRS correspondence is a significant piece of a law-breaking defense.
Legal precedents play a vital role in the outcome of a defense.
An experienced lawyer is your ally, guide, and defender.

Do you have problems with your tax reporting and find out that you are under investigation? In such a case, it’s time to get a tax fraud lawyer. This is what you need to know.

Ever wonder how a tax fraud lawyer can turn the tables in your favor?

Despite this, ]the federal government has expanded its number of federal white-collar investigations which also include investigations focused on federal tax fraud.

In this article, we’ll unlock the secrets behind their tactics. We’ll show how they uncover the truth from evidence piles to build a solid defense.

By learning their legal strategies, you’ll understand the immense value of having a tax fraud lawyer. Stick around to gain fascinating insights into the world of levy law defense!

Examine Financial Records

In the initial stages, a lawyer starts by looking at financial records. These records include bank statements, credit card statements, and returns.

They can tell a lot about the income, expenses, and the degree you have been truthful to the levy authorities.

Finding incompatibilities in these records may seem like finding a needle in a haystack. But a seasoned lawyer knows exactly where to look.

Interview Witnesses

Next up in building a defense is interviewing witnesses. If accused of a crime, there may be people who can help prove innocence.

These individuals could be employees, family members, or anyone with necessary information about the financial situation.

A lawyer will talk to these witnesses to gather evidence. They’ll ask questions to determine if the accusations are true.

Do You Know?:
In 2022 (fiscal year), there were 401 tax fraud offenders sentenced under the guidelines. In addition, the number of tax fraud offenders has decreased by 22.4% since fiscal year 2018.

This information can be decisive in showing the court that you didn’t commit fraud.

Forensic Accounting

Then after, forensic accounting is a primal part of a tax fraud defense. It is a process that involves thoroughly investigating financial records to find any errors or inconsistencies.

A lawyer will use a forensic accountant to examine everything from simple bookkeeping errors to large-scale financial law-breaking.

The beauty of forensic accounting lies in its meticulous nature. It unearths hidden details that could potentially prove innocence.

Documentation of Expenses

Levy documentation is another step in building the defense. A lawyer will gather all receipts and bills that show where the money has gone.

This process can help explain any unusual activity in financial records.

If there are large or unexplained expenses, a lawyer can use these documents to show that you weren’t trying to cheat on the levies.

Instead, you might have made mistakes in recording expenses or misunderstood its rules. This evidence can be very helpful in defending the case.

Communication Records

Communication records are key pieces in building defense.

A levy lawyer will look at the emails, text messages, and other forms of communication.

They can show if one intended to commit a crime or if it was all a misunderstanding.

Sometimes, these records can also reveal if someone else was involved in the alleged crime.

Suppose you find that the communication records indicate confusion or lack of clarity in financial matters.

In that case, one should seek tax audit help to ensure proper interpretation and resolution of any discrepancies.

Tax Professional Communication

Communication with the IRS professionals comes next

Interactions with professionals form a decisive part of the levy fraud defense. The lawyer will review all exchanges between individuals and their preparer or advisor.

This includes emails, phone calls, or any written documents related to their levies.

By examining or inspecting these communications, the lawyer further determines any potential misinformation and misconceptions that may lead to unwanted outcomes.

In some cases, it is found that lawbreaking is not an individual’s fault. Instead, it may be a result of incorrect advice, even from a professional.

Remember, providing such information can make a huge difference in presenting the defense case.

IRS Correspondence

IRS correspondence is yet another significant piece of a law-breaking defense case puzzle. During this phase, a lawyer will carefully review all letters, notifications, and documents exchanged with the IRS.

Jerry Seinfeld once said, “The IRS! They’re like the Mafia, they can take anything they want!”.

This review can reveal discrepancies or misunderstandings that may have led to the fraud allegations.

Statistics:
Since 2010, total funding for the IRS has fallen by about 20%. According to the CBO analysis of IRS data, the number of enforcement staff employed by the agency fell 30% over the same period.

Further, these correspondences may showcase your good faith efforts to resolve any issues or document any misinformation provided by the IRS.

This aspect of evidence is vital, as it can play a major role in demonstrating innocence and could hugely influence the court’s final decision.

Expert Testimony

Expert testimony is an indispensable component of a tax fraud defense.

Such testimonies often come from forensic accountants or levy consultants who can provide a professional perspective on the case.

Their insights can clarify complex issues or explain the reasons behind any discrepancies in the financial records.

Moreover, these experts can validate claims, reinforcing the defense.

If they agree that the allegations are unfounded or that there was a misunderstanding, their testimony carries significant weight in court.

Legal Precedents

Legal precedents play a vital role in the outcome of a defense. These are past court decisions on similar cases that can set a standard or guide the judgment for the case.

If previous rulings favor the defense of other taxpayers under circumstances similar to yours, it bolsters the defense, showing that the court once sided with situations like yours.

Interesting Fact:
What is the most famous tax fraud? Al Capone is likely the most notorious tax evader in history.

On the other hand, if past decisions lean towards the prosecution, the lawyer can understand the court’s perspective and prepare a stronger defense.

They can build on these precedents, strategizing how to navigate the case effectively to achieve a favorable outcome.

Procedural Errors or Misconduct

Mistakes or bad behavior during an investigation or hearing can greatly affect how the law-breaking case turns out.

Some of these are wrongly handling evidence, violating rights during a probe, and making decisions based on bias.

The lawyer will carefully review the process to find any mistakes or wrongdoings that might mean the charges against one are untrue.

If these mistakes in how things were done are found, they can be very helpful in defense.

For example, if there was an illegal search during the investigation or if you were not given a lawyer during questions, these things can help get the charges dropped or lowered.