If you’ve been accused of tax evasion, tax fraud, or failure to pay taxes, you can be punished at both the state and federal levels. In any case, it is imperative that you contact a Raleigh tax layer or tax fraud lawyer as quickly as possible about how to defend yourself against both the criminal and civil penalties associated with failure to pay income, business, or other taxes.
In 2008, the North Carolina Department of Revenue began revamping its outdated computer systems as part of an overall project to improve tax efficiency, customer service, and departmental efficiency. In addition, the new system was designed with the added feature that it would capture tax cheats. For years, given the fractured nature of DOR’s computer system, tax frauds and tax cheats could escape detection simply because the old computer systems were incapable of reconciling accounts.
As the NC DOR’s new system gets up and running, tens of millions of dollars in missing tax revenue has been identified and much of it has been collected. In many cases, the DOR has not engaged in criminal enforcement, and those amounts have been paid back quietly as part of civil arrangements.
But as has recently been reported in WRAL, the DOR is cracking down for failure to file and failure to pay North Carolina state taxes.
Under North Carolina criminal law, failure to pay, failure to file, and underreporting of income can be misdemeanor or felonies under Chapter 105, and may result in the requirement that taxpayers pay the tax owed plus interest and penalties. These three issues can result in civil and criminal penalties, for which it is important to consult with a lawyer.
Naturally, if someone has run afoul of North Carolina’s DOR, it’s not uncommon for them to also have problems with the federal Internal Revenue Service. Federal IRS regulations and tax laws can result in even harsher penalties.