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Home / 5 Tax Crimes and Their Penalties

5 Tax Crimes and Their Penalties

Posted April 17, 2020 Venar Ayar

Clip art of a man with a paper labeled "tax" standing in a jail cell

Knowingly not filing your taxes, providing false information, and other tax crimes can have serious consequences for taxpayers.  While some penalties may come in the form of fines, some punishments can be as severe as prison time.

Take a look at five tax crimes and their penalties and learn why you need a tax attorney to represent you.


Key Insights We Will Discuss

  • Consequences of filing a fraudulent return
  • Tax evasion charges
  • Penalties for not filing your taxes
  • Charges for knowingly not paying your taxes
  • Penalties for willingly not disclosing offshore bank accounts

Executive Summary

  • Tax crimes like filing a fraudulent return or tax evasion are serious crimes that can  come with jail time and fines.
  • Crimes like failing to file a return, failing to pay taxes, and not disclosing overseas accounts are misdemeanors that can result in jail time and fines.
  • A tax attorney can represent you in negotiations with the IRS and try to reduce penalties.
  • Contact Ayar Law to get free, no-obligation law advice at 800.571.7175.

Filing a Fraudulent Tax Return

If you knowingly submit a fraudulent tax return – or one with known errors – you could be facing felony charges.  The penalties can include potential jail time and up to $100,000 in fines.  If you are facing these charges you should hire a criminal tax attorney to have him or her represent you in negotiations with the IRS to try to get your penalty reduced.

Tax Evasion

Tax evasion is a serious tax-related crime.  If you knowingly used illegal means to conceal or misrepresent financial information to evade tax laws or avoid paying taxes, you could face serious penalties.  These can include jail time and fines up to $100,000.  A tax attorney can help represent you in negotiations with the IRS and try to get your penalties reduced.

Failing to File a Tax Return

Not filing a tax return is a misdemeanor that typically comes with civil tax penalties instead of criminal.  You could potentially face jail time and could pay up to $25,000 in fines for each year you didn’t file your taxes.  A tax attorney can help you follow procedures for how to file your late return and help you seek a reduced penalty.

Willfully Failing to Pay Estimated Taxes

Not paying the estimated taxes you owe can have consequences beyond your credit score.  This can result in a misdemeanor and could result in jail time and fines.  Hire a tax attorney to help get a lessened penalty.

Knowingly Fail to Disclose Offshore Bank Accounts

If you fail to disclose foreign accounts or assets to the IRS, you can face hefty fines per year that you didn’t disclose the accounts.  This can include a large fine and 50 percent of the account balance at the time of the violation.  An FBAR lawyer can help you determine how to get the penalties reduced.

Contact a Tax Attorney

If you are being charged with a tax-related crime by the IRS, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from a tax attorney.


Venar Ayar, Esq.

Venar Ayar, Esq.

Attorney-at-Law, Master of Laws in Taxation
Principal and founder, Ayar Law

Venar is an award-winning tax attorney ranked as a Top Lawyer in the field of Tax Law. Mr. Ayar has a Master of Laws in Taxation – the highest degree available in tax, held by only a small number of the country’s attorneys.

More On The Subject

  • How to Avoid IRS Tax Problems with Business Expenses
  • Can I Go to Jail for Past-Due (Delinquent) Taxes?

Filed under: criminal tax

Tagged with: crime, criminal tax, felony, felony charges, fraud, fraudulent return, fraudulent returns, offshore assets, offshore bank account, offshore bank accounts, Penalties, penalty, tax crime, tax crime charges, tax crime penalties, tax crime penalty, tax crimes, tax evasion, tax felony, tax fraud

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