What Is A Tax Crime?
Many IRS investigations involve tax evasion. According to the IRS, tax evasion is a Title 26 tax violation and is a felony. There are two types of tax evasion:
- Willfully attempted to evade or defeat the assessment of a tax
- Willfully attempting to evade or defeat the payment of a tax
Both of these crimes are considered felonies and are punishable by 5 years of incarceration and a $100,000 fine. If a corporation is convicted of tax evasion, the fine may be increased to $500,000. The failure to file, supply information or pay tax is also a Title 26 tax violation. According to the law, individuals are required to pay taxes unless special circumstances allow them a tax exemption. If the IRS accuses you of failing to pay your taxes on time, you may be in danger of suffering serious legal consequences. In order to be convicted, the IRS must demonstrate that:
- You are legally obligated to pay taxes
- You failed to pay your taxes on time
- Failure was willful and deliberate
The difference between failing to pay your taxes and tax evasion involves affirmative action. For example, if an individual conceals financial assets in order to avoid paying taxes, the IRS may accuse him/her of tax evasion. If the individual simply refused to pay, the IRS may investigate him/her for failing to pay.
Other tax-related criminal offense include fraudulently withholding exemption, failing to supply information, creating false returns or other false documents, etc. If you are facing a tax crime investigation or charge, talk to a lawyer from Okabe & Haushalter right away. The sooner we hear from you, the fast we can begin creating an effective and aggressive strategy to keep you out of jail.