How to Avoid U.S. Tax Fraud?
If the IRS suspects tax fraud in your return, they can reopen and investigate your tax records even many years later!
1. Situations That May Trigger an IRS Investigation:
- Reported income does not match IRS records
- Claiming large credits or deductions without proper documentation
- Hiding foreign bank accounts or investments
2. Statute of Limitations for Civil and Criminal Tax Fraud:
- For criminal tax fraud, the statute of limitations is six years.
- For civil tax fraud, there is no statute of limitations. The IRS can investigate these cases at any time.
3. How to Protect Yourself From Committing U.S. Tax Fraud:
- Accurately and fully report all sources of income
- Seek assistance from a qualified professional if you are unsure about your tax return
- Keep proper documentation for all deductions and credits
- Exercise extra caution if you live overseas or hold foreign financial accounts
- If you discover errors on your tax return, correct them as soon as possible—do not wait for the IRS to contact you
Read more:
What Should I Do if I Didn’t File US Taxes Before?
If you have any questions or need any further help,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
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