Is a 1099 illegal refund charge a serious allegation? Why? 6 Answers as of April 27, 2015

I was just recently alerted that I am under investigation for tax fraud. They are saying that I used the 1099-Original Issue Discount form for an illegal refund. Is this a serious accusation? What steps do I need to take?

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Contact a criminal tax attorney to help you through the investigation.
Answer Applies to: Illinois
Replied: 4/27/2015
Polsinelli Shughart PC | William B. Prugh
An allegation of tax fraud is always serious, and can include civil or criminal charges or both. Consult a tax attorney right away to have them explain the law and your rights and remedies. Keep in mind the IRS can make any claim or allegation it wishes, and the burden may be on them to prove their case. But, that is what an attorney with experience in this area does for a living.
Answer Applies to: Missouri
Replied: 4/24/2015
Ronald K. Nims LLC | Ronald K. Nims
First, understand there are two levels of tax problems. The first is civil liability, you took a deduction that you weren't entitled to (remember Billary deducting hundreds of dollars for donating used boxers?) or you "forgot" to report income (remember when Billary "forgot" to report her $100,000 commodity trading bribe? So nice to have a completely corrupt and amoral public figure as an example). These are civil tax issues. You pay the taxes, you pay a 100% penalty (of course as Billary was president the 100% penalty was forgotten - but you ain't president so you'll be paying it), and you pay the interest and that's it. The second is tax fraud. You make up false documents - like a false 1099 or do two sets of books for your business. Now we're talking about criminal acts. Criminal acts result in jail time and forfeitures of houses, cars etc. So tax fraud is serious as a heart attack.
Answer Applies to: Ohio
Replied: 4/24/2015
Andrew Gordon
Andrew Gordon | Andrew Gordon
You should contact an attorney right away!
Answer Applies to: Illinois
Replied: 4/24/2015
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
Tax fraud is a crime. You need to consult with an experienced tax resolution attorney who has experience with defending tax fraud cases.
Answer Applies to: California
Replied: 4/23/2015
    Robert E. Giffin | Robert E. Giffin CPA
    Hire an attorney and remember "FISH" Why? If the fish had not opened his mouth he would not have been caught.
    Answer Applies to: Ohio
    Replied: 4/23/2015
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