Pittsburgh Tax Fraud Lawyer

Tax Fraud Attorney in Pittsburgh, PA

A tax fraud claim is one of the most serious accusations an individual can face. It suggests that one knowingly defrauded the state or federal government, and both charges come with stiff penalties. You can be ordered to pay a fine and/or serve jail time for state tax fraud. A Pittsburgh tax fraud lawyer from Ryan R. Smith Law Offices can help defend you and protect your freedom when facing these charges.

Although the terms are sometimes used interchangeably, tax fraud and tax evasion are different charges. Tax fraud means you knowingly filed your taxes incorrectly to minimize your tax liability. Tax evasion is when you know how much you owe in taxes but choose not to pay it, or underpay your tax liability.

Our Pittsburgh tax fraud lawyers know the subtle difference between the two charges and can come up with possible defense strategies to use against a claim of tax fraud. We take the time to understand and empathize with our clients and give them personalized, skilled attention.

What Does Tax Fraud Involve in Pittsburgh?

When filing your taxes, you are expected to report your correct income, dependents, and deductions. Some filers may underreport income from first or second jobs, claim dependents who are not living with them, or take deductions they are not entitled to claim. Believing they won’t be caught, they take a chance on losing their freedom.

This is not the same as making a mistake on your taxes. A math error or accidentally transposing digits is generally considered to be an unintentional misstep in Pennsylvania and can be argued as such in court. When you knowingly give false information to either pay less in taxes or receive a larger refund, that is tax fraud.

State vs Federal Tax Fraud

While Pennsylvania has a $1,000 fine and one year of jail time as punishment for tax fraud, federal tax fraud has an even stiffer penalty. In fiscal year 2024, 66% of tax fraud offenders in the country served jail time. The average length of time served was 15 months. U.S. Code 7201 states you may be fined up to $100,000 and serve up to five years in federal prison if you are convicted of federal tax fraud.

There is no statute of limitations for the federal government to investigate tax fraud or collect taxes in cases of fraud. However, in most cases, there is a six-year statute of limitations to bring criminal charges, even if fraud is proven.

Pennsylvania also has no time limit to investigate fraud or collect taxes when fraud is discovered, but there is generally a three-year statute of limitations for criminal charges to be brought.

State tax fraud cases are prosecuted in Allegheny County’s Court of Common Pleas, at 414 Grant Street in Pittsburgh. For federal cases, the Department of Justice prosecutes tax fraud cases in the United States Tax Court, which, for Pennsylvania, can be at the William S. Moorhead Federal Building at 1000 Liberty Avenue in Pittsburgh or, in many cases, virtually.

Hire a Tax Fraud Lawyer in Pittsburgh

When you are faced with tax fraud charges, it can be a frightening time. Pennsylvania tax laws can be complicated, and sometimes the amount you owe in taxes is much more than you can afford. Even the county can make mistakes and be charged heavy fines, tens of thousands of dollars.

In some cases, identity theft can lead to others using your information to commit tax fraud. In 2023, the IRS flagged over one million tax returns for identity fraud (and tax fraud).

The first step is to hire one of our experienced Pittsburgh tax fraud lawyers at Ryan R. Smith Law Offices. We have proven trial experience in Allegheny County, and we know how to examine evidence in both state and federal tax fraud cases. We can explain your options, prepare a defense, and negotiate with the prosecutors in your case if necessary.

FAQs

Do Normal People Go to Jail for Tax Fraud in Pittsburgh?

Yes, normal people go to jail for tax fraud in Pittsburgh. Tax fraud is a crime, and if you cannot prove you had no ill intention or negotiate an alternative to jail, you can spend up to one year in state prison or up to five years in federal prison. The smartest thing you can do is hire a local tax fraud lawyer to prevent prison time.

Who Investigates Tax Fraud in Pittsburgh?

Tax fraud in Pittsburgh may be investigated by the Pennsylvania Department of Revenue for state taxes, the Internal Revenue Service for federal crimes, and, in some cases, the FBI or the State of Pennsylvania Attorney General’s Office. In the case of the IRS, its Criminal Investigation Division investigates, and special agents determine if a crime is detected. If so, they refer the case to the Department of Justice for prosecution.

How Are Tax Fraud Cases Initiated?

Tax fraud cases may be initiated in many different ways. In some cases, tax auditors, revenue collectors, or even reports from the public alert the state or IRS of potential tax fraud. Since tax fraud is considered to affect everyone in a given city, there are often online reporting options through the Comptroller. 

What Is the Most Common Form of Tax Fraud?

One of the most common forms of tax fraud is willingly filing a form that either claims more deductions or omits income to receive greater benefits than you are entitled to. If you are charged with tax fraud, a Pittsburgh tax fraud lawyer from Ryan R. Smith Law Offices can ensure your ability to credibly defend the charges.

Ryan R. Smith Law Offices Can Offer You an Aggressive Defense

At Ryan R. Smith Law Offices, our tax fraud attorneys are aggressive in fighting for your rights and protections under the law. We take a unique approach to every client’s case, avoiding generic advice for individualized, detailed counsel.

Our founding attorney has over 25 years of litigation experience and is adept at pre-trial motions. He has also successfully defended clients in jury trials. While tax fraud can be a daunting charge, our tax fraud lawyers have the dedication and experience to protect your freedom and reputation.

Contact our team today to hire a tax fraud lawyer who can offer tenacious but empathetic legal representation.