Fraudulent withholding is a violation of law as set forth in section 7205 of the Internal Revenue Code. Section 7205 is more fully described below.
Employees who are alleged to have overstated their federal tax exemptions on W-4 forms and employers who aid and abet these employees in reporting inflated exemptions may face serious criminal charges. Overstating or inflating federal tax exemptions on withholding exemption certificates is one scheme that many taxpayers use to evade or defeat tax.
Alleged fraudulent withholding certificates may be used as evidence in an IRS criminal matter when, for example, a worker moves from job to job often, resulting in incomplete reporting of income or failure by employers to submit full and accurate withholding exemption certificates.
Charges of fraudulent withholding exemption certificate submission may be one of a laundry list of employment-related tax charges that the IRS may bring against a taxpayer or employer. The investigation may include an investigation as to the following:
• Attempts to evade or defeat tax;
• Failure to supply information;
• Concealment with intent to defraud;
• Omnibus clause violations; and
• Conspiracy to commit offense or defraud the United States.
An experienced tax criminal defense attorney may be able to determine, depending on the facts of your case, what the defense should consist of.
The Offices of David M. Garvin, P.A. has a proven track record and the experience necessary to properly represent clients who face criminal charges such as these. Our clients tend to be highly educated, successful and sophisticated. Many are referred to the law firm by their trusted advisors (CPAs, investment advisors and attorneys).
If you are ready to consult with an experienced criminal tax attorney, contact David M. Garvin to schedule a consultation regarding possible criminal charges relating to alleged tax violations including fraudulent withholding.
Our main office is located in Miami, Florida and serves clients throughout Florida and nationwide. Call (305) 371-8101 to discuss your serious legal matter involving any criminal investigation or tax violation, or email us at firstname.lastname@example.org.
Internal Revenue Code
CRIMES, OTHER OFFENSES, AND FORFEITURES
TITLE 26 Subtitle F CHAPTER 75 Subchapter A PART I
§ 7205 - Fraudulent withholding exemption certificate or failure to supply information
(a) Withholding on wages
Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under section 3402, shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
(b) Backup withholding on interest and dividends
If any individual willfully makes a false certification under paragraph (1) or (2)(C) of section 3406 (d), then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
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Fraudulent withholding exemption certificate or
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