Tax fraud occurs when people or corporations seek to avoid paying the state, federal, or local tax they owe. Tax crimes include failing to file tax returns; evading payment of employment, sales, or excise tax; laundering money to hide income; and using phony tax shelters or other tax-evasion schemes.
If you can't pay taxes you owe, contact the IRS or other tax-collection agencies promptly to negotiate a payment plan, or get help from a tax lawyer. The IRS aggressively investigates and prosecutes suspected tax fraud. Also, f you suspect a person or company of tax fraud, you can write the IRS. Convictions for tax fraud can include substantial fines and jail time.