If you’ve received an RAR (revenue agent’s report) from the IRS indicating that civil fraud penalties have been imposed on you under I.R.C. § 6663, or you are worried about fraud exposure during an audit, it’s important that you speak with a qualified tax attorney as soon as possible.
The IRS generally imposes civil fraud penalties when evidence shows the taxpayer had intent to evade the assessment of tax, which the taxpayer knew was correctly owed. Intent is distinguished from inadvertence, relation on incorrect technical advice, or sincerely-held difference of opinion, negligence or carelessness.
That being said, the burden of proof is on the IRS in order for them to assess civil fraud penalties. At Abajian Law, we take the threat of civil fraud penalties very seriously, and will work tirelessly in aggressively defending you against these claims. We understand that taxpayers sometimes do things with a business or practical intent that unfortunately gets interpreted by the IRS as intent to commit fraud. We take the time to really understand the facts of the case and are then able to articulate a proper defense. The IRS respects the fact that we will take a civil fraud assertion all the way to Tax Court and have before. We have avoided or negotiated down proposed civil penalties countless times for taxpayers.
It takes a knowledgeable tax attorney with a delicate touch for advocacy and communication to fight civil fraud penalties by the IRS. You cannot afford to take these accusations lightly: if the IRS succeeds in demonstrating that your underpayment was fraudulent, the penalty imposed will be equal to 75% of the underpayment amount. This is, of course, in addition to other undesirable and damaging consequences of having a civil fraud penalty successfully imposed against you.
Contact Abajian Law today at 818.396.5059 for a no-obligation, free consultation regarding your own unique situation. If you are facing civil fraud penalties, there is no time to waste in preparing your defense against the allegations you are facing.
Professional Tax Representative
September 23, 2022