Defending Those Charged with Federal Tax Evasion In Punta Gorda
Tax evasion is different from tax avoidance or tax mitigation where individuals or businesses use legal means to lower their tax liabilities. Tax evasion is an illegal practice and involves the use of unlawful means to avoid payment of taxes rightfully due to specific government agencies.
Per Section 7201 of the Internal Revenue Code:
- “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”
If you are found guilty of tax evasion, you face the possibility of paying significant fines and spending time in prison. It is vital you have representation from a Punta Gorda criminal defense attorney at the beginning of your case and throughout each step of the criminal process.
Your attorney can help protect your rights and present your side of the case. At Leskovich Law Group, P.A., we are experienced in defending tax fraud cases, white collar crimes, internet crimes, and other federal crimes.
Don’t Face The IRS Alone. Let Us Help.
The United States government estimates that it loses billions of dollars in tax revenue each year due to widespread tax evasion criminal activities. The government will utilize its powers to go after taxpayers, whether individuals, small businesses, corporations, or other entitles to collect on their unpaid taxes.
The following are common means of tax evasion:
- Misrepresent or underreport income, inflate deductions
- Tax protest or tax resistance (use of frivolous tax law interpretations or a refusal to pay)
- Use of offshore accounts to hide money and its interest income
- Money laundering (illegally obtained money filtered through a legitimate entity)
The IRS Criminal Investigation Unit will conduct a thorough investigation into your financial affairs. Avoid dealing with the IRS alone. In an attempt to provide information or answer questions on your own, you may actually harm your case. You may have not violated the law or committed tax evasion, making it even more imperative that you have legal representation.
Penalties For Tax Fraud
An admission occurs once the taxpayers reports the true income and that can lead to criminal charges. Interest accrues on the unpaid balance, a failure to pay penalty of 0.5% on the unpaid amount each month it is late, and a tax evasion fraud penalty of 75% of the unpaid tax are collectible.
In addition, the taxpayer may be forced to pay fines up to $250,000 (individuals) and $500,000 (businesses). The taxpayer may also receive a prison sentence of 3-5 years. Those guilty of tax evasion may be unable to claim certain credits and face the likelihood of audits in the future.
Any intentional and fraudulent attempt to escape payment of taxes is against the law and the government will prosecute anyone engaging in that illegal practice. A prosecution must prove a tax liability existed, an act was committed to avoid tax payment, and intention was there to avoid a legal duty to pay.