In the United States, there is a substantial quantity of criminal and civil tax litigation. Often, the issues under contention involve income omission or the availability of deductions or credits. The correct forum for tax litigation is mostly determined by the sort of tax at issue. Because taxes in the United States can be imposed at the federal, state, and municipal levels, tax-related litigation must be filed in the appropriate court to resolve these conflicts.
Litigation Or Dispute Types
Civil tax litigation
Title 26 of the United States Code contains the majority of the rules governing federal income tax affairs (including civil and criminal tax litigation) (USC). This Title is also known as the Internal Revenue Code of 1986, as modified (IRC). Title 28 of the United States Code contains the statutes and rules that regulate civil litigation, including tax-related litigation. The different US federal courts with authority over federal income tax proceedings, the US Treasury Department, and the US Internal Revenue Service give interpretive guidance regarding the IRC (IRS).
Criminal tax litigation
Title 18 of the United States Code contains criminal statutes. The majority of US federal criminal tax violations are governed by IRC Chapter 75. The following are examples of IRC tax crimes:
- The endeavor to avoid or resist taxation (IRC 7201).
- The intentional failure to collect or pay taxes (IRC 7202).
- Willful failure to file a return, provide information, or pay taxes (IRC 7203).
- False statements and fraud (IRC 7206).
- Giving false returns, statements, or other papers (IRC 7207).
Tax Evasion And Other Criminal Tax Offenses
The most typical criminal tax offenses and their elements are:
Tax evasion (26 United States Code (USC) § 7201)
To establish beyond a reasonable doubt that the offense of attempting to evade and defeat taxation was committed, the government must demonstrate:
- A large amount of income tax was owed by the defendant in addition to what was indicated on the defendant's income tax return.
- The defendant made an affirmative endeavor to evade or defeat income tax in any way.
- The defendant purposefully tried to avoid and beat the tax.
Fraud or false statements (26 USC § 7206)
To demonstrate a violation of section 7206, the government must prove beyond a reasonable doubt that:
- The defendant signed a tax return that included a written declaration made under penalty of perjury.
- In the return, the defendant made a statement;
- The defendant either knew or should have known that the statement was untrue.
- The defendant made the statement wilfully (that is, with the intent to violate a known legal duty).
Resolve Tax Disputes
Get assistance with resolving IRS tax issues and learning your rights and duties as a taxpayer:
- Taxpayer Advocate Service (TAS) - This free service assists you in resolving tax issues. Receive aid with delayed or undelivered refunds, as well as support if you are unable to pay your taxes. Locate a taxpayer advocate in your area.
- Low-Income Taxpayer Clinics (LITCs) - For free or low-cost services, contact a local LITC. LITCs represent individuals in IRS issues. They educate taxpayers on their rights and duties. They can also assist taxpayers who speak English as a second language (ESL).
- Office of Appeals - An independent IRS group assists you in resolving tax problems without going to tax court. Determine whether an appeal is appropriate for you.
- Centralized Lien Operation - The IRS handles simple and ordinary tax lien concerns like validating a lien, seeking a lien payoff amount, or releasing a lien.. To get help, dial 1-800-913-6050 or send a letter to: Internal Revenue Service, Centralized Lien Operation, PO Box 145595, Stop 8420G, Cincinnati, OH 45250-559.