As anyone who has been investigated for tax evasion will tell you, when the IRS investigates you, it’s a frightening experience. Agents will inspect your tax returns line by line. They will also turn up at your home or office and interrogate you about every detail of your income and expenses. You will need a lawyer beside you who is an expert in tax law and who will stand up for you against the IRS.Federal Tax Evasion Facts
Federal law states that you must pay the taxes that you owe. Failure to do so is a crime. This applies to individuals and trusts, as well as corporations.
The following activities are illegal:
- Not paying taxes that you owe to the government
- Under-reporting your income (filing a false tax return)
- Declaring less profit and gains than really earned
- Overstate deductions
- Claiming false deductions
- Filing false documents
- Creating false tax shelters
It is important to note that the government does differentiate between making an honest mistake and committing tax fraud. Auditors will look for deliberate and willful wrongdoing rather than carelessness or math errors. Specifically, they will look for things like concealing your assets or under reporting your income.
In most cases, if the IRS audits you, they are only looking to collect the back taxes you owe, plus interest and penalties. If, however, they decide that you have committed tax evasion, they will do one of two things: impose a large civil tax fraud penalty, or hand you over to criminal investigators.
If you are being investigated by the federal government for another crime, they will generally investigate your tax records, as well. They will look to see if your expenses far exceed your income. If they find this to be so, they will take it as a clue that your income has been derived at least in part from illegal sources, and add tax evasion to their list of charges against you.
If you receive a tax fraud conviction, you could be sentenced to up to 5 years in a federal prison and/or be required to pay a fine of up to $100,00 (fines for a corporation can be up to $500,000.) You will also be required to pay court costs for each individual tax crime.How Sean Logue Law can Assist You
If you are facing charges of tax evasion, you will come up against a tenacious US prosecutor and inflexible laws. You will require the services of a lawyer who is experienced in tax law and skilled in finding the best options to help clients get good outcomes. An expert federal lawyer from Sean Logue Law can review your options with you and help you decide your best course of action. Our lawyers will fight to protect your rights and give you the most compelling defense possible. Contact us at: (412) 276-5890 or (412) 389-0805 for a free consultation.United States Code
If you wish to learn more about federal criminal offenses, they are defined in the United States Code.