Virginia Tax Lawyer Providing Skilled Representation in Tax Evasion Cases
Whether you are an individual taxpayer or a business, being investigated for a tax crime is a very scary and alarming event. When the federal government suspects that a taxpayer has committed a tax crime, the Criminal Investigation (CI) Division of the IRS will initiate an extensive investigation of the taxpayer’s activities. The special agents in the CI Division are expertly trained financial investigators responsible for examining and uncovering a wide range of tax and other financial crimes, including income tax evasion.
The IRS generally categorizes tax evasion into two offenses: (1) the voluntary and intentional attempt to evade or defeat the assessment of a tax and (2) the voluntary and intentional attempt to evade or defeat the payment of a tax. Tax evasion offenses can involve a number of different actions in violation of the law, including:
- Filing a false return or false amended return
- Failing to file a required return
- Understating income, profits or gains
- Overstating deductions and expenses
- Keeping two sets of books
- Making false entries and /or using false documents
- Diverting corporate funds to pay personal expenses
- Hiding income in offshore bank accounts
- Other activities designed to conceal income or evade payment of a tax owed
Fines and Penalties for Tax Evasion
Tax evasion is a serious crime that can result in substantial monetary fines and penalties, including time in jail. Under section 7201 of the Internal Revenue Code when a person “willfully attempts in any manner to evade or defeat” a tax liability or payment thereof, the person will be guilty of felony. Section 7201 further provides that upon conviction, the taxpayer will be fined not more than $100,000 ($500,000 for corporations) and/or imprisoned for up to five years, along with the costs of prosecution. In addition to the criminal fines and punishment, the guilty taxpayer will be liable for the back taxes due along with interest and civil penalties.
A criminal tax investigation can be a very lengthy and involved process. The CI Division of the IRS will undertake a complete and thorough investigation of your financial activities to determine whether your tax evasion case should be referred to the Tax Division of the U.S. Department of Justice for prosecution. If the DOJ accepts the matter for prosecution your case will be presented before a grand jury. The grand jury will hear the evidence against you to determine whether you should be indicted for the federal crime of tax evasion.
Contact Thorn Law Group Today
If you are under criminal investigation for tax evasion or another tax crime you should discuss your case with an experienced criminal tax attorney immediately. The lawyers at Thorn Law Group defend individual taxpayers and entities throughout Virginia and beyond facing all types of criminal tax investigations and prosecutions, including tax evasion. We are a strong and powerful team of tax attorneys who will mount an aggressive defense on your behalf and explain what is happening at each step of the legal process.