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Persons convicted of tax evasion and other federal or state tax crimes face devastating civil and criminal penalties. If you are found guilty of evading or attempting to evade federal income taxes, you can be ordered to repay the IRS, pay extensive criminal fees, pay for costs associated with prosecution, serve months or years of prison time, and submit to supervised release after you leave prison. Depending on your occupation and the nature of the offense, you may also face professional sanctions, such as the loss of essential licenses or certifications needed to maintain or continue your career.
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Due to the myriad of negative consequences that can result from a tax evasion conviction, or even a criminal investigation into alleged tax evasion, it is in your best interests to be represented by an experienced and proven tax defense attorney. Serving individual taxpayers and business entities throughout the Sacramento region, the tax attorneys and CPAs at the Tax Law Office of David W. Klasing are committed to upholding and safeguarding your constitutional rights while seeking ways to mitigate civil and criminal tax penalties. Whether we are on the offensive with a hard-hitting litigation strategy, or are pursuing strategic negotiations with the DOJ and IRS, our award-winning Sacramento tax lawyers and CPAs are here to provide an unparalleled level of client service and support.
Most types of criminal offenses are prosecuted under state laws, in state courts. However, crimes involving federal taxes, such as U.S. income taxes, violate the Internal Revenue Code (IRC) and as such, are prosecuted at the federal level by the Tax Division of the Department of Justice (DOJ), which frequently works with the IRS and other government agencies to obtain data on suspected tax offenders. Federal tax crimes are subject to harsh penalties, and those established by the U.S. tax evasion statute, 26 U.S. Code § 7201 (attempt to evade or defeat tax), are no exception.
The criminal branch of the IRS is aptly called the Criminal Investigation Division, or IRS-CI. At no point in the past century has IRS-CI’s conviction rate dropped below 90%, a statistic which underscores the importance of deft legal representation in U.S. income tax evasion cases. Without swift-moving, top-quality representation, you are in great danger of being convicted – and in turn, facing serious penalties.
Under 26 U.S. Code § 7201, offenders can be fined as much as $100,000 per count with six tax years ordinarily investigated and prosecuted (or, in the case of corporations, as much as $500,000). In addition, the statute allows for a prison sentence as long as five years (60 months). Defendants who are convicted of tax evasion will also receive a criminal record, which can be extremely burdensome when seeking employment, applying for loans, applying for housing, or even trying to travel abroad.
How Does the IRS Find Out About Tax Evasion?
It may be a shock to discover that you are being investigated for tax crimes – if you have a chance to discover it at all. The IRS will not necessarily inform you that a criminal tax investigation is underway but may nonetheless be investigating you for tax fraud. This is especially likely if you were recently being audited, but abruptly lost contact with your auditor, which is one of many warning signs of a criminal tax referral. The IRS recently announced plans to increase the number of criminal tax referrals it makes, likely signaling an era of increased prosecution of tax evaders.
There are many ways that the IRS can detect or become aware of potential fraud. Frequently, an investigation begins because an IRS auditor finds unusual errors or omissions while conducting an income tax examination (audit) of the taxpayer. In addition to searching for “indicators of fraud” during tax audits, the IRS draws on information from many other sources, including but not limited to tax whistleblowers; data analytics; leaks like the Panama Papers; collaborations with other U.S. or international law enforcement groups, like the “J5”; and foreign banks and financial companies, which are bound to strict disclosure rules concerning U.S. customers.
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Sacramento, CA Tax Evasion Defense Lawyers and CPAs
Take decisive action to protect yourself today. If you are at risk of being charged with tax evasion or related offenses, call the Sacramento tax fraud defense lawyers at the Tax Law Office of David W. Klasing at (916) 290-6625, or contact us online. Please note all meetings at our Sacramento location must be scheduled in advance.
Tax Evasion FAQs
For additional information about federal income tax evasion or other forms of tax fraud, you may find the following FAQs from our tax library and tax evasion archive useful. However, if you are concerned about a criminal charge or investigation, it is in your best interests to consult an attorney for legal assistance immediately.
- Can you be reported to the IRS for suspected tax fraud?
- How should you respond to willful tax evasion charges?
- Is acting in good faith a legal defense to tax evasion or failure to file a return?
- Is my tax advisor liable for helping me commit tax evasion?
- Is tax fraud likely to be disclosed during divorce proceedings?
- What are some common warning signs or ‘red flags’ for tax fraud?
- What is the difference between criminal tax evasion and civil tax fraud?
- What is the difference between tax evasion and tax avoidance?
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Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here:
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