So what is tax fraud? Tax fraud can be a lot of different things but generally speaking it means that you have intentionally misled or lied on your tax return, or that you made money and you intentionally failed to report that money. That can be very, very serious. You absolutely could be in the position of having criminal sanctions with the IRS, which is an entirely different set of facts and you do not want to play around with that. You definitely want to seek legal counsel that handles criminal matters specific to that kind of area. That's very serious.