San Antonio Tax Fraud Lawyers

Types of State Tax Fraud in Texas

Texas tax fraud encompasses various types of fraudulent activities related to different taxes levied by the state, such as: 

• State sales tax fraud: This type involves intentionally underreporting sales or manipulating records to avoid paying the correct state sales tax owed on goods or services sold.
• Payroll tax fraud: Payroll tax fraud occurs when a business fails to report accurate payroll information or withholds payroll taxes from employees but does not remit them to the appropriate tax authorities as required by law.
• Corporate tax fraud: Corporate tax fraud involves falsifying financial information or using deceptive practices to evade corporate income tax obligations in Texas.
• Estate tax fraud: Estate tax fraud involves deceitful actions related to estate tax filings, such as undervaluing assets or providing false information to reduce estate tax liability.
• Excise tax fraud: Excise tax fraud occurs when individuals or businesses fail to pay or underreport excise taxes on specific goods or activities, such as alcohol, tobacco, motor fuel, and certain luxury items. 

In addition to these taxes, other taxes required in Texas include property taxes, which local governments levy to fund public services like schools and infrastructure. Texas also imposes a franchise tax on businesses operating in the state based on the business entity's margin or apportioned taxable capital.

Federal Tax Fraud

Federal tax fraud includes a range of deceptive practices aimed at evading taxes owed to the federal government, such as:

• Tax Evasion: This is the most common type of tax fraud and involves intentionally misrepresenting or concealing income to avoid paying taxes. It may involve underreporting income, inflating deductions, or hiding assets offshore.
• Filing false returns: Submitting tax returns with fabricated or inaccurate information, such as fictitious expenses or inflated deductions, constitutes tax fraud.
• Concealing income: Intentionally failing to report all sources of income, like cash transactions or earnings from illicit activities, is considered concealing income, another form of tax fraud.
• Employment tax fraud: This occurs when employers withhold employment taxes from employees' paychecks but fail to remit those taxes to the IRS. It can also involve misclassifying employees as independent contractors to avoid payroll taxes.
• Tax shelter fraud: Some individuals and businesses engage in abusive tax shelters that exploit tax laws for illegitimate tax benefits. These schemes involve complex financial arrangements to reduce taxable income artificially.
• Fraudulent claims for refunds: Making false claims for tax refunds by fabricating expenses or qualifications can lead to penalties and legal consequences for tax fraud.
• Identity theft: Individuals may steal individuals' personal information to file fraudulent tax returns in their names to claim refunds illegally.
• False documentation: Providing forged or falsified documents to support tax deductions or credits constitutes tax fraud.