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In the case of the Zourdos's, the IRS's criminal tax charges were the result of an IRS investigation which lasted from 1998 to 2001. The Zourdos's provided the accountant with only the computer generated information and did not provide their own information for the tax forms. The investigation was conducted as a criminal tax prosecution, and at the end of 2002, John Zourdos was convicted of two counts of filing a false tax return and one count of conspiracy to defraud the United States. The Zourdos's appeal of the conviction was successful and in 2005, a new tax court trial was returned with the same verdict.

In 2005 John and Helen were again indicted for tax fraud. This time, John was found guilty of three counts of tax evasion and Helen was found guilty of one count of tax evasion and one count of filing a false tax return.

The IRS is always investigating individuals and tax preparers that are suspected of fraudulent activity. The IRS urges all taxpayers to be vigilant to ensure that their tax returns are not fraudulent. While penalizing is always bad, and paying taxes is good, there is a gray area when it comes to tax fraud.

The IRS notes people who are accused of tax fraud are fined, imprisoned, or are sentenced to probation if found guilty in many cases. In addition, if the taxpayer conspired with another person to defraud the United States, he or she can be prosecuted for tax fraud as well.

In addition, if the person or person's corporation files a false tax return, it can lead to an increasing number of federal criminal tax charges, including filing false tax returns and tax evasion. A tax fraud conviction is likely in most cases, but the punishments can vary widely depending on the severity of the offense.

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