It is often said that the only inevitable things in life are death and taxes. For any number of reasons, however, people in Pennsylvania and elsewhere may not pay their state or federal taxes. At Rubin, Glickman, Steinberg & Gifford, we understand that what might have been a minor oversight or misunderstanding could lead to tax evasion charges. Seeking advice from an accountant or tax attorney can be crucial in defending against such charges. In this post, we will discuss possible defenses to these potentially serious criminal allegations.
According to the Internal Revenue Service, there are two general types of tax evasion. You may be charged with this offense if it is alleged that you deliberately attempted to “evade or defeat the payment of a tax.” If, for example, you understate your income in order to avoid being held liable for your full tax liability, it may constitute an attempt to evade assessment. By the same token, you may face tax evasion charges if you are accused of intentionally attempting to escape paying a tax.
In order to obtain a conviction on tax evasion charges, the prosecution must generally prove that you knowingly and purposely took steps to evade your taxes. Therefore, it may be to claim that you simply forgot to file. Likewise, you may argue that you mistakenly did not file. For example, you meant to file, but you mistook the filing date. In this situation, you may not be held criminally responsible for neglecting to file your taxes. You may also claim that you were unaware that you had made a mistake in your filing.
As is the case with other criminal offenses, there is a strict statute of limitations on tax evasion charges. In these types of cases, charges must be filed within six years of when the incident occurred. Thus, the IRS cannot legally file charges against you if that time period has expired, regardless of the evidence it has against you.
For more information about dealing with this type of alleged fraudulent activity, please visit our white-collar crimes page.
Understanding Tax Evasion
Tax evasion is a serious federal crime that involves the willful attempt to evade or defeat tax payments owed to the United States government. Prosecuted under 26 U.S.C. § 7201, this offense criminalizes intentional acts to avoid paying taxes. The Internal Revenue Service (IRS) aggressively pursues tax evasion cases through its Criminal Investigation Division. Tax evasion charges can arise in both individual and corporate settings. Common forms of tax evasion include failing to report income, underreporting income, and inflating business expenses to reduce taxable income. These actions are taken with the intent to defraud the government and avoid fulfilling tax obligations.
Types of Tax Evasion
Tax evasion can take many forms, each designed to defraud the government by paying less than what is legally owed. Common methods include hiding income, inflating deductions, engaging in fraudulent tax schemes, underreporting income, and inflating business expenses to reduce taxable income. These actions can occur in both individual and corporate contexts and often involve complex financial transactions and detailed tax records. The intent behind these actions is to evade taxes and reduce tax liability unlawfully.
Penalties for Tax Evasion
Tax evasion is a felony offense under federal law, carrying severe penalties. A conviction for tax evasion can result in imprisonment for up to 5 years, fines of up to $250,000 for individuals and $500,000 for corporations, and restitution to the government. Additionally, the IRS may impose civil penalties, including fines, interest, and the potential seizure of property or assets to satisfy unpaid tax liabilities.
The severity of the penalties depends on factors such as the amount of tax evaded, the duration of the evasion, and the defendant’s role in the scheme. These harsh consequences underscore the importance of complying with tax laws and fulfilling tax obligations.
Legal Strategies for Defense
Defending against tax evasion charges requires a thorough understanding of federal tax laws, accounting practices, and the IRS’s investigative techniques. Experienced legal defense is crucial in developing a strong defense strategy to protect your rights and interests.
Common defenses to tax evasion charges include lack of willfulness, lack of knowledge of tax laws, mistake of law, and entrapment. A skilled defense attorney can help determine the best strategy and negotiate with the prosecution to reach a settlement or plea deal that minimizes penalties.
Crafting an effective defense strategy is essential to challenging the prosecution’s case and establishing reasonable doubt.
The Role of a Tax Attorney
A tax attorney plays a critical role in defending against tax evasion charges. They provide strategies to counter the IRS and protect your rights. A tax attorney can help you understand the complexities of federal tax law and devise effective defense strategies. They can also negotiate on your behalf to reach a settlement or plea deal that minimizes penalties. If your case proceeds to trial, a tax attorney can present evidence, cross-examine witnesses, and make compelling arguments on your behalf.
Throughout the legal process, a tax attorney should provide ongoing support and maintain open lines of communication to ensure you are informed about the progress of your case and understand the implications of various legal decisions. Their expertise is invaluable in navigating the complexities of federal tax evasion cases and achieving the best possible outcome.
Why Rubin, Glickman, Steinberg & Gifford P.C. Is Your Choice for Tax Evasion Defense
If you are facing tax evasion charges, having a trusted legal advocate can make all the difference. At Rubin, Glickman, Steinberg & Gifford P.C., we bring over 65 years of experience to help you navigate the complexities of federal tax law. Recognized by U.S. News & World Report and Pennsylvania Super Lawyers, we have built a reputation for providing strategic and ethical representation in high-stakes cases.
Our team understands the nuances of defending against tax evasion allegations, from challenging the intent behind underreporting to disputing IRS findings. We work diligently to craft tailored strategies that protect your rights and minimize potential consequences. Contact us at (215) 822-7575 or through our contact form to discuss how we may assist you.
Rubin, Glickman, Steinberg & Gifford P.C.
Pennsylvania Attorney's
January 29, 2025
