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Okabe & Haushalter

Los Angeles Tax Evasion Attorney

Los Angeles Tax Evasion Lawyer

Many people in California find taxes frustrating and confusing. Sometimes it feels as if the tax rates, particularly property taxes and income taxes, are consistently rising. This frustration could lead to individuals attempting to find ways to lower their tax liability. Unfortunately, sometimes this can lead to tax evasion charges. A person can face charges if they evade California taxes or federal taxes. If you are accused of misrepresenting or lying about certain facts to decrease your tax liability, you need to seek assistance from an attorney immediately. At Okabe & Haushalter, our Los Angeles tax evasion defense attorneys are ready to get to work on your behalf today.

Tax Fraud And Tax Evasion Charges

Tax evasion is the term used to describe the act an individual, firm, or trust undergoes to attempt to not pay taxes illegally. It generally includes taxpayers deliberately misrepresenting or concealing the true state of their matters to the tax authorities in order to reduce their tax liability. This includes dishonest tax reporting methods such as declaring less income, profits, or gains that were actually earned or overstating deductions. As more and more individuals are caught committing tax evasion, the tax gap, or the difference between the amount of taxes that should be collected and the amount that is actually collected, increases.

In some cases, tax evasion includes an unintentional mistake made by an individual on their returns. If you have unknowingly made an error, and the IRS is auditing you, it is time to contact a seasoned criminal lawyer to help protect your future.

What Are The Signs Of Tax Evasion?

When the IRS is looking for fraudulent tax statements from individuals, they often see the following as warning signs for tax evasion:

  • Inadequate tax records
  • Concealment of assets, income, or illegal activities
  • Failure to cooperate with tax authorities, such as the IRS
  • Dealing in cash
  • Understatements of income
  • Failure to file tax returns
  • Failure to make estimated tax payments

California Tax Evasion Charges

Under California Revenue and Taxation Code § 19706, a person can be convicted have a crime if they:

  • Willfully fail to file tax returns or supply information intended to evade any taxes
  • Willfully and intentionally make, sign, or verify false or fraudulent tax return information

The law applies to any taxes a California resident is required to pay. This includes:

  • Employment-related taxes to the Employment Development Department
  • Income tax to the Franchise Tax Board
  • Sales and use taxes to the Board of Equalization

Federal Tax Evasion Charges

A person can face federal charges if they knowingly try to pay less federal taxes than they owe. Federal tax evasion law is outlined in 26 U.S. Code § 7201 and states that if a person willfully attempts to evade or defeat federally imposed taxes, then they will be guilty of a felony. Examples of federal tax fraud include:

  • Not reporting all income earned during the year
  • Making false statements on a tax return
  • Claiming deductions, exemptions, or dependents that you are not entitled to
  • Failing to file a state tax return

Enlist Exceptional Legal Representation

If you or somebody you care about is facing allegations of tax evasion or has actually been charged criminally, seek legal assistance as soon as possible. At Okabe & Haushalter, our Los Angeles tax evasion defense attorneys are ready to get to work on your case immediately. We have extensive experience handling complex white-collar criminal defense cases, and we understand what you are going through. We will use our resources to conduct a complete investigation into your case in order to ensure the best possible outcome in your situation.

All too often clients will come to our firm with legitimate questions regarding their audit by the IRS. Many of them wonder what the difference is between a simple mistake and a conviction for tax evasion because they fear that their simple mistake will be viewed as fraud. If you or someone you know is being audited by the IRS, it is extremely important to consult with our firm before you reveal any information that can make you appear to be guilty.