Do you know what the difference is between negligence and fraud. The IRS will penalize you for both but facing fraud charges will be much more severe. For instance a negligence charge on your tax return may add a 20% penalty to your bill, but if you are hit with a tax fraud charge you may face a 75% penalty. Fines and penalties are only the beginning. In case of fraud you may also be put under the IRS’s criminal investigation division and be fighting serious charges.
So what is the difference. Well, tax fraud is the willful act done with the intent to defraud the IRS. This means you made claims on purpose to trick the system. On the other hand, tax negligence is making an honest mistake on your tax returns. Even the IRS knows that the tax law is complicated so they usually will understand when a taxpayer makes a mistake.
If you are facing charges by the IRS for either negligence or fraud contact us today at (866)664-6647 to receive a free consultation.
To learn more about the differences between negligence and fraud you can read the following article provided online. http://www.nolo.com/legal-encyclopedia/negligence-versus-tax-fraud-irs-difference-29962.html