Understanding Tax Evasion
We understand the severity of tax evasion allegations and the impact they can have on your life. We believe that everyone deserves a fair and just legal representation, regardless of the nature of the charges they face. At Goldburd McCone LLP, our experienced team of attorneys will work tirelessly to help you minimize penalties and negotiate settlements where appropriate.
What Is Tax Evasion?
Tax evasion is the illegal act of avoiding or underpaying taxes through fraudulent means. According to Title 26, U.S. Code, Section 7201, individuals or corporations who willfully attempt to evade or defeat a tax are subject to prosecution and severe penalties.
What Are Examples Of Tax Evasion?
Examples of tax evasion include failing to report all income, claiming false deductions or credits, hiding assets, using fake Social Security numbers and using offshore bank accounts to conceal income. Another example is underreporting income by not disclosing cash payments or bartering transactions.
How Does The IRS Prove Tax Evasion?
The IRS uses a variety of methods to detect tax evasion, including audits, criminal investigations and data analytics. They also rely on tips from whistleblowers and informants. The IRS must show that the taxpayer intentionally underreported income or overreported deductions to prove tax evasion.
What Are The Consequences Of Tax Evasion?
The consequences of criminal charges like tax evasion can be severe, including fines, interest, penalties and imprisonment. Civil penalties can be as much as 75% of the underpayment. In contrast, criminal penalties can result in up to five years in prison and a $250,000 fine for individuals or $500,000 for corporations.
Is Tax Evasion A Felony In New York?
Yes, tax evasion is a felony in New York. Individuals convicted of tax evasion face imprisonment, fines and the loss of professional licenses. Corporations found guilty of tax evasion can face significant fines, forfeiture of assets and exclusion from government contracts.
What Are Potential Defenses To Tax Evasion?
Depending on the nature of your charges, you may be able to pursue several different defense options. Some methods of defending against these charges include establishing a lack of evidence for intentional evasion and proving that a third-party tax preparer is liable for the evasion (intentionally or unintentionally).
What Is The Statute Of Limitations For Tax Evasion?
Each state has its own laws regarding the statute of limitations in these cases. In New York, the statute of limitations in these cases is three years.
Signs Of Tax Evasion
There are many things that may catch the IRS’s attention and suspect you of committing tax evasion. Some signs of evasion include claiming residency in another state, claiming many dependents, having spotty or weak financial records, hiding personal or financial assets, and frequently opening and closing businesses.
What Are The Differences Between Tax Avoidance And Tax Evasion?
For tax avoidance, these cases usually include legal and legitimate strategies that minimize your tax liability. Tax evasion involves fraudulent methods of deceiving the government into believing you owe less on your taxes than you actually do.
Make An Appointment Now
At Goldburd McCone LLP, our tax attorneys have decades of legal experience representing small to medium-sized businesses and nonprofits facing tax issues. Our team of tax professionals provides creative solutions and intelligent advocacy to help you navigate complex tax laws and avoid tax evasion.
Since 1983, we have skillfully represented clients in New York City, Long Island, across the country and around the globe against criminal tax investigations. Contact an experienced tax attorney today for a case evaluation. To make your appointment, call 212-235-1817 or toll-free at 866-712-9505, or contact us online.