Federal Tax Evasion
If you’re experiencing issues with tax reporting, facing an IRS investigation, or have family and friends charged with tax evasion, you need a skilled tax evasion lawyer. The federal government takes a hard stance on tax evasion and initiates new accusations and arrests daily.
To avoid becoming another tax evasion statistic, reach out to Ledingham Law. Our dedicated team of tax evasion attorneys can help you correct filing errors or present your case more effectively to avoid severe penalties. Contact us today at (240) 673-6869 for a consultation!
What is Tax Evasion?
Tax evasion occurs when an individual or business deliberately attempts to underpay their tax liability. This might involve filing a false income tax return with unreported income, overstating deductions, or failing to file tax returns altogether to avoid detection.
The willful evasion of tax payments can encompass various offenses including mail fraud, wire fraud, corporate fraud, payroll tax fraud, and failure to file federal income tax returns. These actions can lead to criminal prosecution and substantial civil penalties that a tax evasion attorney can help navigate.
COMMON TAX EVASION SCHEMES
Understanding what is tax evasion in practice helps identify risky behaviors. Tax evasion crimes can include corporate tax fraud and employment tax fraud, such as paying employees in cash, failing to file payroll tax returns, or incorrectly classifying employees as independent contractors.
Other forms of corporate tax fraud involve businesses that operate exclusively with cash transactions and then file fraudulent tax returns. Often business owners will accept only cash payments and report a significantly smaller amount of income than what was actually earned, concealing their true tax liability.
International schemes continue to grow in prevalence and sophistication, with taxpayers hiding assets in offshore accounts or digital assets like cryptocurrency to evade tax obligations.
WHAT IS THE PENALTY FOR TAX EVASION?
Tax evasion criminal penalties vary significantly based on the circumstances. A tax evasion charge can result in a felony conviction with financial penalties and a maximum sentence of 5 years in prison. The average prison term ranges between 3-5 years, typically combined with monetary penalties. The specific facts of each case dictate the severity of punishment, which is why working with an experienced tax evasion lawyer is crucial.
WHAT SHOULD I DO IF I AM AUDITED?
Making false statements to the Federal Government can worsen your situation by increasing potential sentences and intensifying the investigation. It’s essential to consult a tax evasion attorney if you’re concerned about potential tax evasion charges, have unpaid taxes, or face accusations of tax avoidance.
I Think I Committed Tax Evasion, Can I Fix It?
The IRS established the voluntary disclosure program to provide taxpayers with a pathway to disclose their filing of false tax returns and resolve their federal tax issues. If the United States accepts your voluntary disclosure, this can result in reduced civil penalties and limited exposure to federal tax evasion charges and criminal prosecution.
To properly submit a voluntary disclosure, you must do so before the IRS initiates a civil examination or criminal investigation into your tax affairs.
This program doesn’t apply to taxpayers with income from illegal sources, including income that may be legal under state law but considered illegal activity under federal laws.
Although it might seem counterintuitive to alert the IRS to your failure to pay previous federal income taxes, this approach may be your best option. A voluntary disclosure can decrease the costs of prosecution in federal courts and potentially result in a reduced prison sentence. A tax evasion attorney can guide you through this process effectively.
WHEN DO I NEED TO CONSULT A TAX ATTORNEY?
If you suspect you’ve committed federal tax evasion, you need to consult a tax professional, especially a specialized tax evasion lawyer, immediately. Underreporting your federal taxes constitutes a serious federal crime, and the penalties and interest associated with it will only increase your financial burden over time.
Using false invoices, foreign bank accounts, and other illegal tax shelters in an attempt at tax avoidance or submitting false returns will compound tax evasion charges and potentially increase your federal jail time for willfully failing to meet United States tax obligations.
Additionally, if the IRS begins an audit of you or someone connected to you, consulting a tax evasion attorney becomes imperative. A qualified tax evasion lawyer can ensure you don’t make false statements to the United States government and help you navigate the audit process to avoid criminal charges.
Understanding what is tax evasion and its consequences is the first step toward protecting yourself legally. At Ledingham Law, our experienced tax evasion attorneys are ready to help you address these serious matters with the expertise and care they require.
CLIENT TESTIMONIALS
Being selected for an audit is arguably one of the worst things that could happen to a small business owner, or at least that’s how I felt.
It felt a lot less stressful when I hired Jess to communicate with the IRS on my behalf. Her extensive knowledge of tax law was evident when she would educate not just me but also the RA on the proper law.
She went the extra mile every day – with driving to me, essentially holding my hand through an interview, and making sure all responses to the RA were effective.
If you get audited – I strongly recommend having her by your side.
– Parul G.
As a small business owner, I had an enormous amount of questions. I needed to know how to book keep, claim deductions and credits, navigate selling online, providing services in different jurisdictions, and filing quarterly taxes.
A small business requires an enormous attention to detail and Jessica helped me be meticulous in strategizing my tax landscape and know the necessary laws and regulations.
I highly recommend her to anyone with tax questions.
– Nate W.
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If you’ve made a mistake or a deliberate attempt to file inaccurate personal or corporate tax returns, you risk a jail sentence unless you work Ledingham Law. Our tax evasion attorneys are trained and experienced in tax laws and can help reduce your chances of getting a fine and sentence for tax fraud.
