Bakersfield, CA Tax Evasion Defense Attorney + CPA
If you have been charged with tax evasion, are under investigation for tax fraud, or believe that an audit could lead to a criminal investigation, it is urgent that you immediately contact a skilled and experienced tax defense attorney for help. At the Tax Law Office of David W. Klasing, we are IRS tax evasion defense lawyers who possess more than 20 years of combined experience representing individuals and business entities in misdemeanor and felony cases. With offices conveniently located in Bakersfield, our award-winning tax team is ready to provide fast and responsive regional service that meets the highest standards of quality and client advocacy.
Our Bakersfield tax lawyers have a strong record of obtaining favorable outcomes in preindictment federal tax evasion cases, because we bring an innovative, strategic, and tireless approach to every matter we handle. If you are searching for a skilled and effective tax evasion defense attorney in Bakersfield, look to the Tax Law Office of David W. Klasing for 24-hour service and support.
What is Tax Evasion?
The federal tax evasion statute, which is contained with other U.S. tax regulations within the Internal Revenue Code (IRC), is located at 26 U.S. Code § 7201 (also written IRC § 7201). The formal name for this offense is “attempt to evade or defeat tax,” defined by the statute as any “willful” effort to somehow “evade or defeat any tax imposed by this title or the payment thereof.” This often involves U.S. income tax evasion, but can also relate to offshore tax evasion, or concealed foreign bank accounts and unreported offshore income generating assets.
How Does the IRS Detect and Investigate Tax Evasion?
The tax code can be confusing, and taxpayers frequently make errors. This is distinct from taking deliberate actions to conceal or avoid paying taxes on income. The difference between tax mistakes and tax evasion is the taxpayer’s mindset, or intent. A tax violation crosses the line into tax evasion when the taxpayer acts willfully, or intentionally, to disregard a known legal duty. An example would be a scenario in which the taxpayer knowingly underreports income in an effort to unlawfully reduce his or her tax liability. Other forms of tax evasion include omitting sources of income, fraudulently claiming tax credits, or attempting to hide income in foreign bank accounts.
The IRS looks for certain “badges of fraud,” or indicators of tax evasion, to determine whether the taxpayer made a sincere error or intentionally broke the law. Indicators of fraud include multiple delinquent or unfiled returns, excessive claiming of credits, or, in the case of a business, mismatches between differing sets of books. If these or other indicators are fraud are discovered, which frequently occurs during tax audits, the case may be referred to the IRS Criminal Investigation Division (IRS-CI), which in turn, may bring the case to the U.S. Department of Justice (DOJ) for prosecution, where appropriate.
What Are the Penalties for Tax Evasion?
As noted above, the penalties for tax evasion can be particularly severe, even among tax offenses. As provided by 26 U.S. Code § 7201, judges may sentence up to five years in prison if the defendant is convicted, depending on factors like the defendant’s criminal history, the defendant’s level of cooperation with prosecutors, the nature of the offense, and other variables. As a perusal of the DOJ’s numerous press releases will reveal, many tax offenders receive sentences somewhere within the six-month to three-year range, often followed by a period of supervised release, which is similar to probation.
In addition to serving prison time, convicted tax evaders are also generally ordered to pay various fines and fees, including IRS restitution, criminal fines up to $100,000, and costs arising from prosecution of the case. If the offender is a financial or tax professional of some sort, such as a CPA, tax attorney, or tax preparer, he or she also risks various sanctions, such as the suspension or revocation of licenses and certifications. For a tax professional and most licensed professionals, allegations of tax evasion can spell not only harsh criminal consequences, but irreversible damage to one’s career.
In addition to criminal penalties, a civil tax fraud penalty may be imposed, equaling up to 75% of the unpaid amount. Civil tax penalties are frequently imposed in addition to criminal penalties, amplifying the risk involved in an IRS audit or criminal tax investigation.
Bakersfield, CA Tax Evasion Defense Lawyer + CPA
At the Tax Law Office of David W. Klasing, we extensive experience avoiding tax evasion charges from being brought in the first place. We understand the tactics that prosecutors and IRS agents use and know how to counter them effectively to at a minimum achieve damage control. In many cases we are able to avoid an eggshell audit or reverse eggshell audit form resulting in a referral for investigation by the criminal investigation division of the IRS whom have a 90% conviction ratio. We will fight tirelessly to protect your constitutional rights, preserve your reputation, and prevent you from incriminating yourself, dealing with the IRS and DOJ on your behalf. Contact us online immediately to arrange a confidential, reduced-rate consultation, or call the Tax Law Office of David W. Klasing at (661) 432-1480 to speak with a Bakersfield tax evasion lawyer today.
Please note that all meetings at our Bakersfield location must be arranged in advance.
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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: