Civil and Criminal Penalties - Abusive Tax Schemes |
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Investors of abusive tax schemes that try to escape their legal tax responsibilities are still liable for taxes, interest, and civil penalties. Violations of the Internal Revenue Code with the intent to evade income taxes may result in a civil fraud penalty or criminal prosecution. Civil fraud can include a penalty of up to 75% of the underpayment of tax attributable to fraud, in addition to the taxes owed. Criminal convictions of promoters and investors may result in fines up to $250,000 and up to five years in prison.
How Do You Report Suspected Tax Fraud Activity?
Table of Contents - Abusive Tax Schemes
Tax Fraud Alerts
Criminal Investigation (CI)
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Page Last Reviewed or Updated: July 17, 2008