Tax Evasion – How to Avoid Tax Penalties
Tax evasion in the form of filing fraudulent tax returns is a crime. This is a very serious offense and can result in prison time or a significant fine. It is important to hire a competent criminal tax defense attorney if you suspect you have engaged in a tax scheme. Once the IRS gets involved, it can be very difficult to mitigate the consequences.
To be found guilty of tax evasion, the Government must show that a person engaged in the act has a specific intent to avoid paying taxes. Evidence of an intent to avoid taxes can include false entries and invoices, keeping double books, hiding assets and sources of income, and destroying records. A juror will need to find the defendant guilty beyond a reasonable doubt.
If you want to avoid paying taxes, you can use tax-advantaged retirement accounts and charitable donations. These are two of the most popular methods of avoiding taxes. You can also deduct certain expenses such as tuition and day care expenses. Other tax breaks include charitable donations. If you are a business owner, you can sell your business to a family member and receive an exemption for estate and gift taxes.
A person who has engaged in tax evasion can face severe penalties. A tax evasion conviction can result in a fine of up to $250,000 and imprisonment for up to five years. In addition, the government may also ask you to repay the costs associated with the prosecution. While a conviction is not the end of the world, it should not be taken lightly.
Tax fraud involves deception and hiding the truth. It can also include misrepresenting facts and circumstances. Other forms of tax fraud can include the use of tax exemptions and structuring events and transactions in ways that can mask the true nature of the situation. It may also include destroying or altering documents. If you or someone you know has been accused of tax fraud, a legal and comprehensive tax defense strategy can help you minimize your tax liability.
Tax evasion is the deliberate use of illegal means to avoid paying taxes. This can be in the form of underreporting income, inflating expenses, or hiding income in offshore accounts. It is estimated that the U.S. government will lose $345 billion to tax evasion in 2007 alone.
A tax evasion charge carries a hefty fine. The government has to prove that the taxpayer engaged in an affirmative act with the intention to evade payment. This action is often committed when an individual intentionally fails to file a tax return with the intent to avoid the collection of taxes.
If you are under investigation by the IRS, it is imperative that you retain a tax attorney as soon as possible. Tax attorneys have experience in IRS investigations and can help you avoid tax litigation. It is also important that you preserve relevant records. Avoid destroying evidence or calling witnesses as this can make the situation worse.
