September 25, 2019
Tax evasion and prison time: A case provides an example
Tax crimes can come with serious consequences. A recent case provides an example. The case involves government allegations an attorney committed tax evasion. After facing the allegations and reviewing the case, the attorney chose to agree to a plea deal.
What were the accusations?
The prosecution accused the attorney of failing to report income on his 2001 and 2002 tax returns. Due to this failure, he now allegedly owes the IRS over a million dollars in taxes and penalties.
Why would a mistake lead to prison time?
In most cases, a mistake on one’s tax returns can result in penalties and fees but rarely lead to prison time. In this case, the prosecution stated the accused not only failed to report the income, he also took steps to evade the IRS when the agency sought payment. These steps allegedly included using cash to avoid a financial record of his spending habits and setting up bank accounts under aliases.
The prosecution is generally more likely to push for imprisonment if they can establish a willful attempt to avoid tax obligations. In this case, the government believed it had enough evidence to establish an intentional evasion of tax obligations.
What can others learn from the case?
The IRS takes allegations of tax evasion seriously. These accusations can lead to serious penalties, including prison time. In this case, the accused was sentenced to 30 months imprisonment.
As a result, anyone facing allegations of criminal tax evasion is wise to act to protect their interests. An attorney experienced in tax evasion defense can review the allegations and discuss legal strategies to better ensure your rights are protected.