What is the difference between civil fraud and tax fraud?

Civil fraud and tax fraud are two distinct types of fraud that have different legal implications. Civil fraud is when an individual or entity deliberately deceives another party in order to gain a financial advantage, or when a contract is breached due to a knowing misrepresentation of information. Tax fraud, on the other hand, is the willful attempt to evade paying taxes that are owed. Tax fraud can take many forms, including filing false returns and failing to report income. In Pennsylvania, civil fraud is punishable by financial damages or injunctive relief, such as an order to stop the fraudulent activity. Civil fraud may also incur fines and criminal penalties, depending on the severity of the offense. Tax fraud, however, is a federal crime and can be punishable by fines, prison time, and restitution. In both cases, an individual or entity convicted of fraud may be required to pay back the full amount of money lost as a result of the fraud. The main difference between civil fraud and tax fraud is that civil fraud involves deception for personal gain or to gain an unfair advantage, whereas tax fraud involves deliberately attempting to evade paying taxes. Additionally, civil fraud is generally handled at the state level, while tax fraud is a federal crime and is investigated by the IRS.

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