Defending Tax Evasion Charges
The Internal Revenue Code (IRC) offers various methods to reduce your tax liabilities. However, this does not imply that it would allow a taxpayer to get away without paying the taxes they owe, or paying any less than they owe. Any attempt to evade or defeat taxes is a crime, and you need a criminal attorney if you were facing such charges.
Failing to report your income related details correctly on the tax return or claiming deductions that you do not have authority to avail are just a few instances that may lead to criminal charges. Though the US tax system is voluntary, this does not make it easier for you to cheat the Internal Revenue Service (IRS) of taxes.
How does the IRS detect fraud? Two common reasons for initiation of an investigation are – suspicion of a revenue agent during an audit, or a tip from an entity. The agent may decide the penalty for this if it is not a very significant matter. The agent may also refer the case to the Criminal Investigation Division (CID) of the IRS.
The agents working for the division are skilled accountants and are proficient in law enforcement techniques. It is their responsibility to unearth the facts and find adequate evidence to justify prosecution. In most cases, the CID has a complete case against you by the time the prosecution press charges formally.
What increases the chances of prosecution in such a case? Certain circumstances make it more than probable that an entity faces tax evasion charges. For example, the case involves evasion of a considerable amount of tax or it involves entities that would make it attract a lot of attention.
Getting a criminal attorney as soon as you know of an ongoing investigation or face tax evasion charges is essential. Consequences could be severe. The penalties on conviction may include up to 5 years in prison and/or $100,000 fines.
The burden of proof in such a case, like all criminal cases, is on the prosecution. This implies that conviction is possible only if the prosecution has adequate evidence to establish that –
You owed additional income tax to that you filed in the returns
You knowingly and willfully tried to evade or defeat these tax liabilities
At the initial stages of such a case, it may be possible for your criminal lawyer to work out a solution. However, the difficulty of success increases with the passing of time, as the prosecution gets more time to prepare its case, and your lawyer loses more time to prepare the defense.
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