Federal Tax Evasion

If you’re having issues with tax reporting, the IRS is investigating you, or your family and friends are charged with tax fraud, you should get a tax fraud lawyer. The federal government is strict on tax fraud and makes new accusations and arrests every day.

To avoid being part of the tax evasion statistic, contact Ledingham Law. Our team of lawyers can help you correct the errors or present your case better to avoid harsh penalties. Contact us today at (240) 673- 6869 today!

What is Tax Evasion?

Tax evasion occurs when an individual or business willfully attempts to underpay its tax liability, such as filing a false income tax return with unreported income and/or overstatement of deductions or failing to file tax returns to avoid detection.

Willful evasion of tax payments can include mail fraud, wire fraud, corporate fraud, payroll tax fraud, and failure to file a federal income tax return, which can lead to criminal prosecution and large civil penalties.

Common Tax Evasion Schemes

The crime of tax evasion can include corporate tax fraud and employment tax fraud, such as paying employees in cash, failing to file payroll tax returns, and even classifying employees as independent contractors.

Other corporate tax fraud involves businesses handling only cash and then filing a fraudulent tax return. Often business owners will accept only cash and file a fraudulent return that reports a smaller amount of income than earned to conceal the true tax liability.

International schemes continue to increase and involve taxpayers hiding assets in offshore accounts or digital assets, such as cryptocurrency.

What is the Penalty for Tax Evasion?

Tax evasion criminal penalties vary. A tax evasion charge can result in a felony conviction with financial penalties and a maximum penalty of 5 years in prison. The average prison time is between 3-5 years in combination with a monetary penalty. The facts of the case dictate the level of punishment.

What Should I Do If I Am Audited?

Making a false statement to the Federal Government can increase your sentence and heighten the thoroughness of the investigation. It is important to consult a tax attorney if you are worried about tax evasion charges, have unpaid taxes, or are accused of tax avoidance.

I Think I Committed Tax Evasion, Can I Fix It?

The IRS created the voluntary disclosure program to give taxpayers a way to disclose that they filed a false tax return and resolve their federal tax matters. If the United States accepts your voluntary disclosure, it will reduce the civil penalties and limit your exposure to a federal tax evasion charge and criminal prosecution.

To properly file a voluntary disclosure, it has to be before the IRS initiates a civil examination or a criminal investigation.

This practice does not apply to taxpayers with illegal sources of income, which includes income that is legal under state law but illegal activity under federal laws.

Although it feels counterintuitive to alert the IRS to your failure to pay previous federal income taxes, it may be your best option. A voluntary disclosure can decrease the costs of prosecution in federal courts and may result in a lesser prison sentence.

When Do I Need to Consult a Tax Attorney?

If you suspect that you have committed Federal tax evasion, you need to consult a tax professional, especially an attorney, immediately. Underreporting your federal taxes is a serious federal crime, and the penalties and interest associated with it will increase the monetary penalty.

The use of false invoices, foreign bank accounts, and other illegal tax shelters in an attempt at tax avoidance or submitting a false return will increase the charges of tax evasion and increase your possible federal jail time for the willful failure to follow United States tax liability.

Also, if the IRS begins an audit of yourself or a third party around you, you need to consult a tax professional. A tax attorney can ensure that you do not lie to the United States government and help you navigate the audit to assist you with avoiding a criminal charge.

What our clients say about us

Client Testimonials

Contact us

Hire a Tax Attorney at Ledingham Law

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.

Contact Ledingham Law today at (240) 673-6869 for a consultation.