FELONY TAX EVASION

Tax laws are enforced through criminal tax statutes.

The crime of tax evasion involves the intentional failure to report income and improperly claiming tax deductions. Charges typically result from:

• Failure to report cash income;
• Deducting personal expenses on a business return;
• Concealing income;
• Falsely claiming charitable deductions;
• Submitting false information;
• Failing to report foreign income;
• Failing to file a return;
• Keeping double books.

Willful Tax Evasion

The key to defending any tax evasion case is proving that you did not intentionally make a material misrepresentation to the IRS to reduce your tax liability. To be found guilty of tax charges, the Government must prove “willful conduct.” In other words, you must have intentionally violated “a known legal duty.”

Failure to File

Failing to file a tax return is a misdemeanor punishable by a fine of up to $25,000.00 (up to $100,000.00 for corporations). While a misdemeanor charge is scary enough, the IRS can convert it to a felony charge.

The consequences of a felony tax conviction include a fine of up to $100,000.00 for an individual (and up to $500,000.00 for a corporation). Because of the potential for large fines and jail time, retaining an experienced attorney as early as possible is essential.

Audits

If your IRS agent suspects you have engaged in fraud, penalties may result. But the most serious situation is when the agent refers your case to the IRS Criminal Investigation Division (CID). Once the CID becomes involved, investigators may contact your friends, employer, co-workers, bankers, and spouse to gather evidence against you.

If the IRS decides to prosecute, the chances of a conviction are high. Close to half of those convicted of tax evasion will be incarcerated. Therefore, immediately retain an experienced attorney if you learn that you are the subject of a CID investigation. There may still be an opportunity to avoid having the charges presented to a Grand Jury.

While it is challenging to avoid prosecution, we will work to convince the IRS that your situation involves a misunderstanding of tax law rather than a willful violation.

Accountants

Accountants can also be charged with a felony for aiding and assisting the taxpayer to obstruct the due administration of tax enforcement.

Statute of Limitations

There is a six-year statute of limitations for filing criminal charges based on failing to file a tax return.

There is no limitation on how long the IRS can demand payment of taxes owed on non-filed returns.

Protecting Mississippi Taxpayers

If you are facing federal tax evasion charges, the deck is stacked against you. The Government has unlimited resources to prosecute the claims. The Government can charge multiple counts to drive up the potential consequences to you. This makes choosing the right lawyer one of the most critical choices you will ever make.

For experienced criminal defense counsel, contact us online or call 601-957-3101.