Call Now (800) 681-1295

Is it tax evasion if my W-4 contains false statements?

Table of Contents

    Without knowing more about your specific facts and circumstances, this question cannot be answered. However, IRC Section 7201 finds a person liable for tax evasion when he “willfully attempts in any manner to evade or defeat any tax.” An attempt to evade taxes exists when one (1) fails to file a tax return and (2) engages in an affirmative act to evade or defeat the assessment of a tax.

    Furthermore, case law has held that a taxpayer makes such an affirmative action when he files a false W-4 and later fails to file his income tax return. See, e.g., United States v. Brooks, 174 F.3d 950, 954-56 (8th Cir. 1999). For example, if a taxpayer files a W-4 Form, falsely claiming that he is tax exempt in Year 1, and several years later he fails to file his income return, he commits tax evasion because he made an affirmative act to defeat a tax. See United States v. King, 126 F.3d 987, 991-94 (7th Cir. 1997), where the taxpayer committed Spies evasion. There, the taxpayer failed to file a return. Taken alone, that would not have risen to the level of a felony. However, he was found liable because his action was coupled with his prior acts of filing a W-4 where he falsely claimed to be exempt from income tax—actions which taken together, constituted an “affirmative act” to evade taxes. Interestingly, the old W-4s relied upon by the prosecution in establishing Spies evasion had already expired for the tax year at issue but they were still evidentially sufficient to find that the taxpayer had committed an affirmative act by their prior use.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934