Tax fraud is a willful act done with the intent to defraud the IRS (usually done by deliberately underreporting income). Because the tax laws are so complicated, tax fraud is one of the hardest crimes for prosecutors to prove, since they have to show proof of criminal intent. Accordingly, the government will generally overlook mistakes if they tend to fall within the "gray area."

Examples of when criminal intent can be inferred include:

• Using a false Social Security number on tax returns
• Keeping two sets of financial books, or no books at all
• Claiming dependents when you are single

While the likelihood of being convicted of a tax crime is relatively minimal, it does happen to some people. If you are in the unlucky minority, you need to hire the best criminal defense lawyer you can find.