Tax Fraud / Tax Evasion Attorney In Miami

Facing Tax Troubles? Know Your Rights!

Have you found yourself entangled in a tax reporting predicament? Are you under investigation? Has the IRS come knocking at your door? Received a Grand Jury subpoena? Or do you know someone close accused of a federal theft offense or facing tax fraud charges? It’s time to consider the services of a dedicated tax fraud lawyer. Here’s what you need to understand.

Understanding Tax Evasion Laws

Federal law, specifically 26 U.S.C. § 7201, deems any intentional attempt to evade paying your true tax liability to the IRS as unlawful. To prosecute someone under this law, the IRS must establish two primary elements:

1. The existence of a tax deficiency.
2. Deliberate effort by the individual to avoid paying taxes.

Notably, tax evasion charges hinge on intent. Many individuals find themselves facing federal tax evasion allegations when they’ve inadvertently made errors or omissions on their taxes.

Paying less than your actual tax liability is considered tax fraud, a violation of federal law that can result in both civil and criminal penalties. If you’re under investigation or facing charges for tax fraud under 26 U.S.C. Section 7201, it’s crucial to engage an experienced federal tax fraud defense attorney promptly.

Reporting Obligations and Tax Fraud

Every U.S. citizen and resident bears the responsibility of accurately calculating their federal income tax liability and making timely payments. Businesses in the U.S. share similar obligations, including payroll taxes like Social Security tax and other taxes specified by the Internal Revenue Code. Failure to meet these obligations constitutes a violation of the Internal Revenue Code. While most cases are civil in nature and subject to IRS audits, intentional underpayment or nonpayment allegations are deemed tax fraud, potentially leading to criminal investigations and severe penalties.

Federal Tax Fraud Penalties

Both individuals and corporations can face penalties for tax fraud. Criminal penalties for tax fraud include hefty fines, lengthy prison sentences in federal penitentiaries, and reimbursement of the government’s prosecution costs. Civil penalties encompass monetary fines and repayment of prosecutorial expenses.

• Tax Evasion: Penalties include imprisonment up to five years, fines up to $100,000 for individuals and $500,000 for corporations, and reimbursement of prosecution costs.
• False Statements on Income Tax Returns: Penalties involve imprisonment up to three years, fines up to $100,000 for individuals and $500,000 for corporations, along with reimbursement of prosecution costs.
• Aiding or Assisting in Preparation of False Documents: Penalties encompass imprisonment up to three years, fines up to $100,000 for individuals and $500,000 for corporations, and reimbursement of prosecution costs.
• Conspiracy: If a conspiracy involves a felony, as is often the case for federal tax crimes, penalties may include up to five years in prison and/or criminal fines. Convicted individuals may also face additional penalties related to the underlying tax crime.

Examples of Affirmative Acts for Tax Fraud

Federal prosecutors can pursue criminal tax fraud charges based on affirmative acts, including:

• Filing a false or fraudulent return that substantially understates taxable income.
• Submitting returns with false information, such as names or Social Security numbers.
• Keeping dual sets of books.
• Creating counterfeit entries, invoices, or documents.
• Failure to maintain books or records.
• Destruction of books or records.
• Concealment of assets.
• Covering up income sources.
• “Other conduct likely to mislead the IRS or conceal income.”
• Hiding assets offshore or transferring them to third-party names.
• Misusing charitable deductions.
• Abusing trusts to hide assets.
• Fabricating invoices and pay statements.
• Using someone else’s identity for transactions.
• Primarily dealing in cash or untraceable currency.

Defenses to Tax Evasion

Depending on your circumstances, several defenses may be available to you to avoid wrongful conviction. These defenses can argue that you:

• Lack the knowledge of the tax system required for a complex evasion scheme.
• Maintain a history of tax law compliance.
• Relied in good faith on advice from a trusted tax practitioner or advisor, believing it to be accurate without reason to doubt it.

Don’t face tax fraud allegations alone. Seek the expertise of a seasoned tax fraud defense attorney to protect your rights and mount a strong defense.