The percentage of criminal charges filed against taxpayers in the United States in 2019 is generally lower than it has been in the previous years. The chances of undergoing a criminal investigation by the IRS are therefore minimal. However, you might still find yourself part of that small percentage with no idea how to address their tax issues and avoid a prison sentence. Tax issues are very complex and mistakes are bound to happen.
How Does The IRS Recognize Tax Fraud?
The IRS has become more understanding and lenient when it comes to errors in calculations and other honest mistakes, for instance, miscalculating the amount of Earned Income Tax Credit. This is a painful mistake with its consequences but it is not likely to trigger a criminal investigation. Purposely concealing records such as a bank account from an auditor, on the other hand, is a sure way to call for probe into your situation. What scenarios then, may lead to a criminal investigation by the IRS?