The IRS aggressively pursues tax crime convictions. Generally speaking, tax fraud and tax evasion are generic terms that refer to a number of tax-related criminal offenses. In the United States, thousands of individuals are convicted of tax crimes every year. If you’re under investigation for a tax crime, we urge you to contact an attorney from our firm as soon as possible. At Okabe & Haushalter, we are whole-heartedly dedicated to helping people like you—people facing allegations of a serious crime. Whether you’ve been accused of tax fraud or tax evasion, call our office today and schedule a case evaluation.
The IRS actively seeks out individuals who are paying less than what they should owe. In some instances, the IRS will audit an individual who is entirely innocent of tax evasion or fraud. Actively and aggressively pursuing ways to minimize the amount of taxes you owe is not a crime. You can be charged with tax evasion for the following:
In some cases, the IRS will file an income tax return for you should you fail to do so, but you will be prevented from receiving any deductions or exemptions.
In the United States, tax evasion is punishable by prison time and severe fines. More than 80% of individuals convicted of a tax crime are sent to prison. If convicted of tax evasion, you could be sent to a federal prison for five years and have to pay a fine of $250,000. If the IRS convicts your business of tax evasion, you may have to pay $500,000 in fines. Similarly, tax fraud is punishable by three years in prison and a $250,000 fine. If a business is convicted, the fine may be doubled. These penalties are severe and the IRS has an exceptionally high conviction rate. If you’re under investigation for tax fraud or tax evasion, call an attorney as soon as possible.
There are many types of tax fraud and evasion schemes. For instance, many evasion schemes involve income tax evasion. Per the IRS, some businesses practice a form of tax evasion called pyramiding, which occurs when a business or company withdraws income taxes from its employees’ paychecks but fails to give the tax money to the IRS. Instead, the business keeps the money. Usually, these businesses file bankruptcy to avoid responsibility related to their offense.
Other employers evade income tax payments by pay their employees in cash. This practice generally leaves employees with lost or reduced Medicare and Social Security benefits in the future. Additionally, it leaves the United States government with lost tax money. Some individuals attempt to conceal money from the IRS in order to avoid including it on their tax return. Offshore bank accounts are often used in this form of evasion.
According to the IRS, some countries (called “tax havens”) entice American investors into their banks by offering a no- or low-tax environment. These countries usually charge high fees when investors open their accounts in order to make up for the reduced taxes. About 40 countries and jurisdictions across the globe aggressively advertise themselves as tax havens, encouraging United States taxpayers to invest their money overseas and avoid paying taxes to the IRS.
Tax crime cases require lawyers who are well-versed in the intricacies of tax law. Our criminal defense attorneys at Okabe & Haushalter have an exact knowledge of the laws governing state and federal taxes. We have handled many high profile cases and gained national media attention for our record of success. When it comes to tax evasion charges, you should not take any chances. Choose a firm with the necessary dedication, decisiveness, and aggressive attitude.