Being accused of a financial crime can be difficult, especially if the crime was unintentional. With regards to tax fraud, individuals could face criminal charges for failing to properly file for their taxes. Because not everyone uses an accountant, this means individuals file their own taxes. In these cases, mistakes can be made. However, only if the individual seeks to evade taxes or defraud the IRS will a tax fraud charge hold up.
Income tax fraud is when an individual willfully attempts to evade their tax obligations or willfully defrauds the IRS. Specifically, this crime occurs when a person or a company intentionally fails to file an income tax return, willfully fails to pay the taxes they owe, intentionally fails to report all income he or she receives, makes fraudulent or false claims on a tax return or prepares and files a false return.