Last year, our criminal tax defense lawyers published an article examining tax fraud statistics for 2016, such as how many people were convicted, where the most convictions occurred, and the typical length of a prison sentence. These statistics were drawn from the United States Sentencing Commission (USSC), which releases an annual overview of tax fraud offenses, offenders, and penalties. In this update, we’ll be taking a closer look at some of the USSC’s tax fraud statistics for 2017, showing what’s changed, what’s stayed the same – and how tax fraud offenders are punished.
The data in this article is sourced from the USSC’s 2017 “Quick Facts” report on tax fraud offenses. (To view the previous year’s version, follow this link.) The facts presented below all refer to fiscal year 2017, unless otherwise noted.
Who is the “average” tax offender, and where do the most tax crimes happen?
How did tax crimes affect the U.S. economy?
How was tax fraud punished?
What percentage of people received enhanced penalties for tax fraud, and why?
For more information about tax crimes, you may be interested in learning about the IRS criminal investigation process, browsing our criminal tax FAQ section, or perusing the many IRS statistics that are available on the Internal Revenue Service’s website.
When comparing tax crime statistics from 2017 and 2016, a pattern becomes evident: as the government’s tax losses are growing larger, sentences are getting longer, with larger percentages of offenders facing enhanced penalties. In short – enforcement is getting more aggressive. That is especially true here in the state of California, which accounted for at least 85 out of the 584 tax fraud cases, or about 14.6%, that occurred in 2017.
The bottom line for taxpayers? If you or a family member is under investigation for tax fraud, has been chosen for a tax audit, or is worried about failing to file taxes or failing to pay taxes in the past, it is in your best interests to consult with a tax evasion defense lawyer right away. Depending on the situation, it may be necessary to file an amended return, participate in a voluntary disclosure program, dispute the results of your tax audit, or start building a defense strategy. However, the longer you wait to act, the fewer options – and less bargaining power – you will have when dealing with tax authorities and law enforcement.
If you’re worried about noncompliance with state or federal tax laws, talk to an experienced tax attorney about your options right away. For a reduced-rate consultation, contact the Tax Law Office of David W. Klasing online or call us today at (800) 681-1295. We serve taxpayers in Northern California, Southern California, and international taxpayers.
Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland and Sacramento.
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