What Penalties You May Face for Criminal Tax Evasion

criminal tax evasion and penalties

Failing to file your tax returns and paying the IRS what you owe can result in tax evasion.  This is considered a serious crime and come with severe consequences.

Take a closer look at what is considered tax evasion, what penalties the IRS can assess to offenders, and why you need a tax attorney to represent you in negotiations with the IRS.

Key Insights We Will Discuss:

  1. What is tax evasion
  2. Penalties you may face for tax evasion
  3. How a tax attorney can help defend you against the charges

What is Criminal Tax Evasion?

If you fail to report and pay your taxes by the deadline each year, it can be considered a type of tax fraud called tax evasion.

The following actions can also be considered tax evasion:

  • Not reporting your cash income
  • Reporting less than your actual income
  • Not reporting money in overseas bank accounts
  • Taking false deductions
  • Taking personal deductions on your business returns
  • Claiming false donations to charity
  • Reporting a lesser value of an estate
  • Paying employees in cash to avoid payroll taxes

If the IRS finds an error on your return or suspects fraud, the agency may investigate your tax return by looking at your W-2 or 1099 forms, your bank accounts, and possibly working with a whistle blower to determine if you’ve committed tax evasion.

Penalties for Criminal Tax Evasion

Tax evasion is considered a felony crime by the IRS and can result in severe penalties.  These can include fines, jail time, or both.

Depending on the severity of the tax evasion, you could be assessed a penalty of up to $250,000.  If you committed the crime for a business, the fine can be up to $500,000.

Tax evasion can also result in incarceration.  The length of time served will vary per case but could range from one to five years.

In severe cases, you could face both jail time and a monetary fine.  You may also be ordered to pay court fees.

Benefits of Hiring a Tax Attorney

Tax attorneys can help navigate the legal process around felony tax evasion charges.  An attorney can help present you in negotiations with the IRS to try to get penalties reduced and can use his or her familiarity with tax laws to determine how to best argue your case and which information to use in your defense.

Contact Ayar Law

When you’re facing tax evasion charges, call Ayar Law at 800-571-7175 to receive free, no-obligation tax advice from a tax attorney.

Executive Summary:

  • Failing to file your taxes and pay due taxes to the IRS can result in felony tax evasion charges.
  • Penalties for tax evasion can include possible jail time and monetary fines.
  • Tax attorneys can help build a defense against tax evasion and negotiate with the IRS to get penalties reduced.
  • Contact Ayar Law to get free, no-obligation legal advice at 800-571-7175

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.