In the law, a statute of limitations is a rule governing when prosecutors must file a criminal case against you before losing the right to do so. This rule is designed to prevent criminal charges from being brought in a case where the evidence is too stale, and things happened too long ago. Tax crimes in the United States, specifically tax fraud, also have a statute of limitations. However, the statute of limitations will vary depending on the exact nature of the tax crime with which you were charged, whether your behavior was willful, among other factors.
Anytime you are charged with a crime involving tax fraud, you should reach out to a skilled dually licensed Criminal Tax Defense Attorney and CPA like those on the team at the Law Offices of David W. Klasing as soon as possible. In fact, the best time to reach out to us is before you file your taxes, so our dual lawyers and CPAs can assure everything is done legally, and you can avoid issues down the line. While we discuss the statute of limitations for tax crimes here, there are always differences depending on each person’s situation. You should never make any decisions without consulting with an attorney first.
Statutes of Limitations for Tax Fraud Crimes
As noted above, the statute of limitations is the amount of time after the crime occurs that the authorities have to file charges against you. For example, the statute of limitations is one year for some crimes, meaning that the charges relating to this incident can be filed no later than the one year after the incident took place. The general rule is that the statute of limitations for tax crimes related to the filing of a false tax return starts on the day the return is filed. However, if you file the return early, the statute of limitations will not begin running until the statutory filing date. Again, this can vary with specific crimes, and in some cases, the statute of limitations can be extended. It is always best to speak with a skilled tax attorney like those at the Law Offices of David W. Klasing, who can give you the most accurate and complete analysis and advice.
“Tax fraud” is not a specific crime under the United States Criminal Code. Rather, there are a series of crimes, like deliberately underreporting income or claiming deductions to which you are not actually entitled, that are described under the umbrella term of tax fraud. Other tax crimes may be considered tax fraud or may not, depending on who you speak with. In any case, below, we list the statute of limitations for some of the most common tax fraud charges and other tax crimes.
- Tax Evasion- 6 Years
- Failure to Pay Tax- 6 years
- Failure to File a Return- 6 Years
- Failure to Keep Records- 3 years
- Failure to Supply Information- 3 Years
- Supplying False Withholding Exemption Certificate- 3 Years
- Filing a False Tax Return– 6 Years
- Aiding or Assisted in Preparation or Presentation of False Tax Return– 6 Years
- Deliver or Disclose False Document- 6 Years
- Attempt to Interfere With Administration of Internal Revenue Laws– 6 Years
- Conspiracy to Commit Tax Evasion- 6 Years
- Conspiracy to Defraud the Internal Revenue Service- 6 Years
- False Claim for Refund- 5 Years
- False Statement- 6 Years
Lies, Misstatements, Mistakes, and Concealment or Furtherance of Tax Evasion Will Reset the Statute of Limitations Period
A concept called “the last affirmative act” is also important to keep in mind. If you are questioned about tax crimes that occurred 20 years ago, for example, and lie about it, that lie is the last affirmative act of the crime and it occurred within the 6 year statute of limitations bringing the crime from 20 years ago into the six year statute of limitations.
How Can A Knowledgeable Criminal Tax Defense Attorney Help Me if I Have Committed Tax Fraud?
It is never a good idea to try to wait out the statute of limitations. More times than not, the IRS will catch up with you in enough time to file charges. Furthermore, as noted above, the statute can be extended under certain special circumstances, and the date on which the statute for each crime starts to run varies. Instead, if you know you have committed some sort of tax crime, whether willfully or non-willfully, reach out to an experienced criminal tax defense attorney like those at our firm. We can assess the specifics of your situation and start working to mitigate the damage as much as possible.
In some cases, you may benefit from an domestic or offshore IRS voluntary disclosure or streamlined disclosure program, where you come forward voluntarily and correct your past mistakes and pay the IRS what you owe, plus some fines. However, you will not have to face the highest civil fines or the most severe potential penalties, like jail time. In other cases, especially for small, non-willful errors, we may simply be able to amend your tax returns and have you pay back what is owed. If you have already been charged with a tax crime and believe that the statute of limitations has been violated, we can file a motion to dismiss the case based on this and argue in court that the law should be applied as written.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
Call Our Battle-Tested Tax Attorneys and CPAs Today
If you believe that you have committed a tax crime, trying to wait out the statute of limitations is not the solution. The IRS is known to be on top of these sorts of matters, and they are very aggressive at examining returns and referring potential issues for audits and criminal investigations. Besides the stress of waiting up to 6 years in fear of incarceration is bad for your health. Before getting to this point, after which voluntary and streamline disclosure will likely not be an option, contact a veteran tax lawyer like those at the Tax Law Offices of David W. Klasing right away. We will work to get you back into compliance with as few negative ramifications as possible. To set up a confidential consultation, call our firm today at (800) 681-1295.
We Are Here for You
Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers about Offshore Voluntary Disclosure Initiative (OVDI)
- Why hire David W. Klasing to represent me in an audit
- 2011 Offshore Voluntary Disclosure Initiative FAQ
- Key Features of Initiative
- Eligibility For This Initiative
- 2011 OVDI Process
- Calculating The Offshore Penalty
- Statute of Limitations
- FBAR Questions
- Taxpayer Representatives
- Case Resolution
- What not to do!
- What to do!
- FBAR Reporting and Expired Voluntary Disclosure Program
- How the Law Offices of David W. Klasing Can Help
- Bank account overseas I didn’t report on my income tax
- Do I have to maintain information on overseas bank accounts
Questions and Answers about FBAR Compliance and Disclosure
- Potential charges for not participating in the 2014 OVDP
- How many tax returns will I amend for my FBAR filing?
- FBAR Voluntary Disclosure program end
- Can I make a voluntary disclosure after the deadline?
- Can I use IRS Voluntary Disclosure if I Can’t Pay?
- Potential reporting requirements and civil penalties
- What Happens if You Don’t Disclose Foreign Accounts
- Criminal charges if you refuse voluntary disclosure
- Characteristics of FBAR voluntary disclosures
- What is required to make a valid voluntary disclosure?
- 2012 Offshore Voluntary Disclosure Initiative Objectives
- What is an FBAR?
- Filed amended returns without making a Voluntary Disclosure
- Undisclosed foreign accounts: What exchange rate to use
- Why did the IRS announce the 2012 OVDI at this time?
- Should I consider making an offshore voluntary disclosure?
- Why to consider making a Voluntary Disclosure
- 2012 OVDI program vs. the voluntary disclosure practice
- Foreign bank account asset reporting/filing requirements
Questions and Answers About Foreign Tax Audits
- Does the Fifth Amendment apply to foreign accounts?
- How is evidence cultivated from foreign sources?
- How is tax loss determined?
- How might an FBAR audit be resolved?
- Is a penalty assessment ripe for judicial review?
- Overview of an administrative criminal investigation
- What is the process of an FBAR referral?
- Statute of Limitations raised during a FBAR audit?
- Precautions to be taken in the pre-audit phase
- Recent international tax and reporting prosecutions
- Foreign account, entity and investment prosecution
- Who collects restitution and penalties?
- International tax investigations are an IRS high priority
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime ”evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegations
