Tax evasion is a serious federal crime that can result in substantial penalties, including hefty fines, asset forfeiture, and lengthy imprisonment. Under federal law, tax evasion occurs when an individual or business intentionally underreports income or falsifies financial records to reduce tax liability. If you are facing tax evasion charges in Los Angeles, Glendale, or surrounding cities, it is critical to seek immediate legal representation from an experienced federal defense attorney.
At KN Law Firm, we are dedicated to providing aggressive defense strategies for individuals and businesses accused of tax evasion. With our expertise in federal tax law, we can guide you through the complexities of the legal process and work toward the best possible outcome for your case.
What is Tax Evasion?
Tax evasion involves deliberately attempting to avoid paying taxes owed to the government by falsifying financial information, hiding income, or engaging in other fraudulent activities. Under Internal Revenue Code (IRC) Section 7201, tax evasion is considered a felony, and convicted individuals can face severe penalties.
Common methods of tax evasion include:
- Underreporting Income: Failing to report or hiding sources of income to reduce taxable income.
- Falsifying Deductions: Inflating or fabricating deductions, credits, or expenses to reduce the overall tax liability.
- Hiding Assets: Using complex schemes to hide assets, investments, or financial accounts from the IRS.
- False Tax Filings: Filing tax returns with inaccurate or incomplete information to avoid paying taxes.
Federal authorities, including the IRS, actively investigate tax evasion cases, and the penalties for conviction can be life-altering.
Penalties for Tax Evasion
The penalties for tax evasion are severe and can have a lasting impact on your financial future. Some of the potential consequences include:
- Imprisonment: A conviction for tax evasion can lead to a prison sentence of up to 5 years. In extreme cases, longer sentences may apply.
- Fines: Criminal fines for tax evasion can be substantial. You could face fines up to $250,000 for individuals and $500,000 for corporations.
- Asset Forfeiture: The government may seize assets such as bank accounts, real estate, vehicles, and other property obtained through fraudulent tax activity.
- Restitution: In some cases, individuals may be ordered to pay back the taxes owed, including any interest and penalties.
- Probation: Even if you avoid prison, you may still face lengthy probation periods with strict conditions, including regular check-ins with authorities, community service, or home confinement.
These penalties emphasize the importance of having an experienced attorney to defend against tax evasion charges.
Common Defenses Against Tax Evasion Charges
There are several possible defenses that may be used in a tax evasion case. The prosecution has the burden of proving that you intentionally engaged in fraudulent behavior. At KN Law Firm, we work diligently to challenge the evidence and develop a strategy that puts you in the best possible position. Some common defenses include:
- Lack of Intent: One of the primary elements of tax evasion is intent. If you did not have the intent to evade taxes or act fraudulently, we can argue that there was no criminal wrongdoing. For example, simple errors or mistakes on tax filings are not grounds for criminal tax evasion charges.
- Innocent Mistake or Negligence: You may have made an innocent mistake or neglected to report income, but this does not constitute tax evasion. We can argue that your actions were the result of negligence or misunderstanding rather than intentional fraud.
- Improper IRS Investigation: If the IRS did not follow proper procedures or violated your rights during their investigation, we can seek to have evidence excluded from court. This may be crucial if any search or seizure of records was conducted illegally.
- No Substantial Underpayment: In some cases, a defendant may have made a legitimate attempt to pay their taxes, but simply did not owe the amount claimed by the IRS. If you did not intentionally try to evade taxes, the prosecution’s case may not hold up.
- Insufficient Evidence: Challenging the evidence presented by the prosecution is a critical part of our defense strategy. If the IRS cannot prove that you intentionally engaged in illegal activity, the charges may be dropped or reduced.
Our attorneys will carefully analyze the facts of your case, examine the prosecution’s evidence, and develop a defense that can give you the best chance of success.
What to Do If You Are Facing Tax Evasion Charges
If you are under investigation for tax evasion or have already been charged, it is crucial to take immediate action. The sooner you seek legal counsel, the better your chances of successfully defending against the charges. At KN Law Firm, we recommend the following steps if you are facing tax evasion allegations:
- Consult with a Tax Evasion Attorney: Contact a skilled criminal defense lawyer who specializes in federal tax law. Our attorneys are ready to evaluate your case and provide personalized legal advice.
- Do Not Talk to the IRS Without Legal Counsel: Anything you say to the IRS can be used against you in court. Before making any statements, consult with your attorney to ensure your rights are protected.
- Gather All Relevant Documents: Provide your attorney with all tax documents, financial records, and communication with the IRS. This will help us assess the strength of the case against you.
- Cooperate with Legal Representation: Working closely with your attorney and providing accurate information will strengthen your defense strategy.
Don’t delay in seeking legal counsel. Tax evasion is a serious charge, and acting quickly can make a significant difference in the outcome of your case.
Contact KN Law Firm for a Free Consultation
If you are facing tax evasion charges in Los Angeles, Glendale, or the surrounding cities, don’t face the IRS alone. KN Law Firm has a team of experienced attorneys who specialize in defending individuals against federal tax charges.
Call (888) 950-0011 today to schedule a free consultation. Let us help you navigate this challenging legal situation and protect your future.