Tax Evasion Defense Lawyers in Kalamazoo

Call (269) 218-8880 Today to Protect Your Reputation & Future

Facing charges of tax evasion can be a daunting experience. At Levine & Levine Attorneys at Law, we understand the complexities of tax law and the severity of penalties that may follow if convicted. Our experienced Kalamazoo tax evasion lawyers are here to provide the legal guidance and aggressive defense you need to protect your rights and future. If you’ve been accused of tax evasion, you must seek expert legal help immediately to avoid harsh consequences.

Let us fight for you, call (269) 218-8880 or contact us online today!

What is Tax Evasion?

Tax evasion is the illegal act of deliberately avoiding paying taxes owed to the government. This crime can involve either individuals or businesses and generally entails falsifying financial information, underreporting income, or overclaiming deductions. Tax evasion is different from tax avoidance, which is the legal use of loopholes and exemptions within the tax code to minimize tax liabilities.

The Internal Revenue Service (IRS) is particularly vigilant when it comes to tax evasion, using audits and investigations to identify potential cases of fraud. In serious instances, criminal charges may be brought against the accused. If convicted, the penalties for tax evasion are severe, often involving significant fines, back taxes, interest, and prison time. Understanding what constitutes tax evasion is crucial, as even honest mistakes in tax filings can raise red flags with the IRS.

Common Forms of Tax Evasion

Tax evasion can take many forms, and it is essential to recognize the different ways in which it can occur. Some of the most common forms of tax evasion include:

• Underreporting Income: This involves deliberately reporting less income than was earned in an attempt to reduce the amount of taxes owed. Individuals or businesses may hide cash transactions or understate their profits.
• Overstating Deductions: Some taxpayers try to lower their tax liability by claiming deductions they do not qualify for, such as exaggerated charitable contributions, business expenses, or personal deductions.
• Failure to File Tax Returns: In some cases, individuals may choose not to file tax returns at all, avoiding the payment of taxes. However, the IRS can still assess taxes based on available financial records.
• Hiding Assets in Offshore Accounts: Some individuals or companies may move assets to foreign banks or accounts to hide them from the IRS and avoid taxation.
• Falsifying Records: Deliberately creating fake invoices, receipts, or business expenses to reduce tax liabilities is a form of tax fraud. This can be particularly problematic for businesses, which are expected to maintain accurate financial records.
• Misclassifying Workers: Businesses may attempt to evade payroll taxes by misclassifying employees as independent contractors.

Federal Criminal Penalties for Tax Evasion

Tax evasion is a federal crime, and the penalties are severe. Under 26 U.S. Code § 7201, a person convicted of tax evasion can face up to five years in prison, along with fines of up to $100,000 for individuals and $500,000 for corporations. Beyond the criminal penalties, the IRS can also impose civil penalties, such as a fine of 75% of the amount of taxes owed.

Other penalties include:

• Restitution: A convicted person must pay back all taxes owed, including interest and additional penalties for fraud.
• Incarceration: Incarceration can be ordered for willfully evading taxes, particularly if there is evidence of deliberate fraud.
• Loss of Professional Licenses: Certain professions, such as accounting or law, may revoke licenses for individuals convicted of tax crimes.
• Damage to Reputation: A criminal conviction for tax evasion can significantly tarnish your reputation and harm your professional and personal relationships.

Legal Defenses to Tax Evasion

While tax evasion charges are serious, several legal defenses can be employed to fight these accusations. The defense strategies depend on the specifics of the case, but common defenses include:

• Lack of Willful Intent: Tax evasion requires willful intent. If the taxpayer can show that the underpayment or mistake was unintentional or the result of confusion about the tax laws, they may avoid criminal liability.
• Inaccurate or Misleading Financial Advice: If the taxpayer was misled or misinformed by a tax preparer or financial advisor, this could be used as a defense. The taxpayer must demonstrate that they relied on professional advice in good faith.
• Insufficient Evidence: The prosecution must prove beyond a reasonable doubt that the taxpayer willfully committed tax fraud. If there is insufficient evidence or errors in the investigation, the charges may be reduced or dismissed.
• Correcting the Mistake: If the taxpayer voluntarily corrects their mistake by amending their return and paying the owed taxes, it may serve as a mitigating factor in the case. In some instances, this may result in the dismissal of criminal charges.
• Statute of Limitations: The IRS has a six-year statute of limitations for pursuing criminal tax evasion charges. If the case is older than this period, the taxpayer may be able to have the charges dropped.

An experienced Kalamazoo tax evasion lawyer will carefully review the facts of your case, identify potential defenses, and develop a strategy to protect your rights.

How Levine & Levine Attorneys at Law Can Help

At Levine & Levine Attorneys at Law, we have a strong track record of defending individuals and businesses against tax evasion charges. Our team of skilled attorneys is well-versed in tax law and understands the complexities of both federal and Michigan state tax regulations. We provide personalized legal strategies, meticulously reviewing financial records and gathering evidence to challenge the prosecution’s case.

Your next big decision may be the most important one you make: whether to contact an experienced Kalamazoo tax evasion defense attorney. Call (269) 218-8880 the tax evasion lawyers at Levine & Levine to schedule an initial consultation.