The deadline for filing 2020 income tax returns has just passed after the IRS extended this year’s date from April 15th to May 17th. While no one likes to pay taxes, federal law mandates who is and who is not required to pay federal income tax. Failure to report income and pay the taxes owed to the IRS can end up landing a person in prison on federal charges for tax fraud or tax avoidance. This is what happened recently to one Memphis, TN businessman.

Failure to Report

According to details released by the Department of Justice U.S. Attorney’s Office, Western District of Tennessee, the 38-year-old man in this case failed to report most of the income he derived from a tax service company on his 2012 federal income tax return. Last month, a federal judge sentenced the man to eight months in federal prison, followed by seven months of home detention. He will also be required to serve one year of supervised release once his 15 months of in-custody time is completed. The man is also required to pay the IRS $124,000 in restitution.

The IRS can charge a person (or business) with tax fraud if they “willfully and intentionally” falsify tax return information in order to avoid or limit the amount they are required to pay in income taxes. Some of the reasons the IRS may cite as proof of tax fraud include:

You may have heard the term “forgery” before and associated it with a white collar crime. Forgery is defined as the act of creating or altering a form of writing, therefore making it false and fraudulent. According to Tennessee law, it is illegal to forge a writing with the purpose of committing fraud against someone else. Whether an individual forged something intentionally or accidentally, this type of charge can carry significant penalties if a person is convicted, including jail time. An experienced criminal defense attorney can help those facing these serious charges build a strong defense to avoid a conviction.  

Understanding Actions that Can Lead to Forgery Charges

The state of Tennessee defines forging as creating, altering, completing, executing, or authenticating something in writing to make it look like it was:

• Created or executed by a person who did not authorize such an action.

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Any criminal offense can carry significant punishments if someone is convicted. However, federal crimes tend to be prosecuted more severely, often resulting in longer jail sentences. Common crimes charged at the federal level may include drug trafficking, fraud, counterfeiting, racketeering, and conspiracy. Although counterfeiting crimes have decreased by over 37 percent since 2015, they can still carry stiff consequences. Counterfeit goods or services come from a legitimate source, but they are actually unauthorized reproductions. If you or someone you know is facing federal criminal charges for counterfeiting, it is important to understand your rights while building a strong defense. 

Anti-Counterfeiting Laws

Federal lawmakers passed the first anti-counterfeiting laws in 1790 to protect unsuspecting consumers as well as the government. Since that time, Congress has introduced new legislation as counterfeiting tools and techniques have become more advanced and sophisticated. Although the crime of counterfeiting typically involves creating and producing fraudulent goods or documents, it may also mean using, possessing, or altering legitimate items. 

A few of the most common types of products that can come in counterfeit form include:

Everyone has had the experience of pretending to be something or someone they are not. This is a common occurrence when young adults try new looks or hobbies as they begin to discover who they are as they mature. Trying something new may not be considered a crime, but when this new self-representation becomes deceptive, things can get more complicated. This is especially true with companies who take advantage of curious consumers’ ignorance toward their company or the money they are handing over. These corporations can also use these deceptive tactics to gain a mass of followers willing to work alongside them. Maybe you are a victim of fraud or did not realize that what you were participating in is considered a white-collar crime in Tennessee. Whether you started the fraudulent activity or were tricked into being a participant, you should seek the help of a reputable criminal defense lawyer.

Types of Fraud

There are a number of different types of fraud, all of which prey on the ignorance of consumers. If you are found guilty as a participant of the following practices, you may face serious criminal accusations under Tennessee and federal laws:

Identity theft continues to be an issue for many people even with security measures in place. This kind of theft can range from a few fraudulent charges on a stolen credit card or a total theft of identity by pretending to be someone who they are not. There are two different types of identity theft, financial and criminal. Both, obviously, are illegal, and a perpetrator can end up facing criminal charges. If you are charged with any type of identity theft, it is important to speak to a knowledgeable attorney to understand your options for defense.  

What Is Identity Theft?

Identity theft occurs when a person gains access to someone else’s financial information and uses credit card, bank account, and/or personal identification numbers to make purchases. The records could be stolen through a variety of means, such as hacking into a financial institution’s computer system, using a device called a skimmer at a gas pump, or digging through a person’s trash to find statements and other personal information. Many credit card companies and banks have fraud alerts that may catch unusual activity on their customers’ accounts.