Understanding Tax Fraud

Tax fraud is considered failure to file taxes or filing fraudulently. Both of these situations carry penalties to offenders. However, the severity of the penalty and how the IRS will come after you depends on which offense you’ve violated and how flagrantly you violated it.

Failure to File Taxes

The Famous Tax Evader - Leona Helmsley

Back in 1989 the famous case of Leona Helmsley played out. Wife of one of the world’s wealthiest real estate moguls was sent to prison for four years for tax evasion and fraud. She also had to complete 750 hours of community service and pay New York a $7.1 Million in a tax fraud fine. If you thought you may be able to get away with tax fraud, let the “Queen of Mean” be a reminder to you.