The Argentine was in a Spanish court on Thursday and will face a massive fine after admitting he avoided over £1million in income tax for 2011 and 2012.
Prosecutors said the Blaugrana player had used two companies based in Madeira and Miami as a way to conceal part of the income of his image rights.
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The court's press office said the money owed had already been paid back by the former Liverpool man and a deal is expected to be reached to stop the case going to a trial.
The 31-year-old was in the court for a matter of minutes and left without being questioned by prosecutors.
The BBC have reported that Lionel Messi is to face similar charges, along with his father, in relation to €4.16 million that had been generated from income tax fraud.
The move to take down two of world football's big names could signal a clampdown from authorities of players defrauding authorities.
Mascherano, who has been at the Nou Camp since 2010, is about to start his two-game ban for calling a match official a 'c*** of your mother'.
The South American will miss games against Getafe and Villarreal but will return for the crunch El Clasico tie with Real Madrid on November 21.
With Barcelona and Real Madrid locked in a battle for top spot in La Liga, the showdown at the Bernabeu could prove to be one of the biggest in recent years.
At this early stage of the season, Los Blancos are the only unbeaten team in the top flight and will be hoping to preserve that record beyond the match in Madrid.
However, with Lionel Messi also pencilled in for a return in the Clasico, Barcelona will be back to something resembling full strength.
Who will win the Clasico: Real Madrid or Barcelona? Have your say in the comments section below!