Tax evasion occurs when a person fails to pay his or her taxes according to the terms set by the government. In some cases, you may have made a mistake. In others, you did not communicate your information accurately. In still other cases, you may be taking deductions you know you did not qualify for in the first place.

Whether a mistake or a lack of communication, being charged with tax evasion is a serious crime. As such, any person facing the tax evasion penalties or headed to court must have the best possible legal representation. As your trusted criminal defense attorney in Las Vegas, Gabriel L. Grasso is just a phone call away. Having over 135 criminal jury trials taken to verdict, he is confident he can help you with your tax evasion case.

What Is Tax Evasion?

The term tax evasion is very broad. It implies an individual or a business is taking some step to defraud the U.S. Internal Revenue Service. Misrepresentation of income to the IRS in any form is a federal offense. This may include transferring funds to an offshore account, not reporting all income, hiding other taxable income, or inflating deductions to reduce tax payment. If you are legally required to pay taxes, and you fail to do so, you could be charged with tax evasion.

The only way to avoid tax evasion is to pay your taxes accurately. This means you will need to gather information from the IRS on how to file your taxes. You then need to complete your taxes according to the laws of the filing year – these can change often. Then, you must pay any taxes you owe as a result of the income you received during that year. If you fail in any of these steps, you could be charged with tax evasion.

Types of Tax Evasion

Types of tax evasion include:

  • Personal income tax evasion, for individuals who do not report personal data accurately
  • Employment tax evasion, which occurs when a company does not pay employment taxes, pyramiding, falsifies payroll or pays employees illegally.
  • Business tax evasion which includes claiming false business deductions, claiming personal expenses, keeping two sets of books, or overstating deductions.

Tax Evasion vs. Tax Avoidance

Tax avoidance and tax evasion are two different things. Most people do not want to pay taxes. And, the government has various legal methods you can use to minimize how much taxes you pay. These are available to anyone who qualifies for them. Tax avoidance is a legal way you can take to reduce your tax liability.

Examples of tax avoidance (the legal way to reduce taxes) include:

  • Maximize work deductions or business expenses
  • Use college savings plans with tax advantages
  • Increase retirement savings

These are methods approved for reducing taxes, and you will not be charged with tax evasion for using them.

Tax Evasion Examples

Tax evasion, on the other hand, is an illegal method for not paying what you owe. It is a crime and should be avoided. Some examples of tax evasion include the following:

  • Simply not paying your taxes; if you do not file a taxes and report all of the income you receive, this can be considered tax evasion. You also must pay the taxes you owe.
  • Under-reporting your taxes; you may not be reporting all of your income from all sources, for example, if you fail to report your side business.
  • You simply don’t file a tax return; note that the government receives information of income from those paying you such as employers, investment companies, and financial institutions, which could tell the IRS you should have reported the income.
  • You take deductions you do not qualify for or are unearned; this may include claiming expenses you did not have or not providing accurate information about the deductions you take.

Tax Evasion Penalties and Jail Time

If you are charged with tax evasion, and you go to court for it, you could face numerous tax evasion penalties. The severity of your case will determine whether or not you are facing penalties and how severe they are. Penalties include fines and potential jail time.

  • A business convicted of tax evasion could pay a fine as much as $500,000. An individual convicted of tax evasion could pay a fine up to $25,000.
  • Criminal charges could include up to three years in prison. Jail time is dependent on what the court finds in your case.
  • Additionally, you could pay as much as a 75 percent civil penalty based on the amount you did not pay.

Because of the severity here, it is important for individuals to contact a criminal defense attorney for tax evasion representation in Las Vegas.

Contact Your Criminal Defense Attorney in Las Vegas Now for Immediate Help

Tax evasion poses significant risks for any person accused of it. No matter your guilt, having a skilled, aggressive tax evasion attorney in Las Vegas may improve your outcome. Contact Gabriel L. Grasso, Criminal Defense Attorney. Let our team provide you with fast, accurate information you need to know about your case. Call us at 702-868-8866 or use our online contact form now.