Tax Analysts provides news, analysis, and commentary on tax-related topics, including tax fraud cases. Civil tax fraud and criminal tax fraud are both covered by Tax Analysts’ products. Tax Analysts covers IRS news releases, legislation, Department of Justice documents, and court documents related to civil and criminal tax fraud.

Criminal tax fraud involves a variety of issues: identity theft, crimes by tax return preparers who assist clients in filing fraudulent returns, tax avoidance schemes, and conspiracy to commit tax fraud with others. Individuals who commit criminal tax fraud can be convicted, sentenced to time in prison, and required to pay restitution or fines. Some of the most frequently covered tax fraud violations in Tax Analysts’ products include section 7206, fraud and false statements and section 7207 fraudulent returns, statements, or other documents.

Civil tax fraud coverage often relates to civil penalties under section 6663 imposed on tax underpayments that are due to fraud. A criminal tax fraud conviction precludes an individual from challenging liability for civil fraud penalties. In some instances a finding of fraud can negate statutes of limitations that would normally apply to tax assessment and collection.

Tax fraud also includes a taxpayer’s conveyance of his or her ownership in property to another person or entity to avoid collection of taxes by the IRS’s sale of the property. Other types of fraud involve understating income, overstating deductions, improperly claiming tax credits, and the use of abusive tax shelters.

Section 7623, expenses of detecting fraud and underpayments, provides for the payment of whistleblower awards to individuals who provide information to the IRS that results in the collection of taxes. Whistleblowers who apply to the IRS and have their applications for an award denied can seek review with the U.S. Tax Court.