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Criminal Tax Issues

Tax evasion, tax fraud, and tax preparer penalty assessments are serious matters that require the immediate need for an attorney.  If the government believes you have committed fraud, intentionally failed to file your tax returns, underreported your income, overstated your expenses, or otherwise evaded the payment of tax, you could face serious criminal penalties including jail time.  Contact a tax attorney experienced with criminal tax issues for a phone consultation to discuss your legal options.

Criminal charges by the federal government include:

  • Tax Evasion - I.R.C. § 7201
  • Willful Failure to Collect or Pay Over Tax - I.R.C. § 7202
  • Failure to File, Supply Information or Pay Tax - I.R.C. § 7203
  • Fraudulent Withholding Exemption or Failure to Supply Information - I.R.C. § 7205
  • Fraud and False Statements - I.R.C. § 7206
  • Fraudulent Returns, Statements, or Other Documents - I.R.C. § 7207
  • Attempts to Interfere with Administration of Internal Revenue Laws - I.R.C. § 7212
  • Aiding & Abetting - 18 U.S.C. § 2
  • Conspiracy to Defraud the Government with Respect to Claims - 18 U.S.C. § 286
  • False, Fictitious, or Fraudulent Claims - 18 U.S.C. § 287

States can also charge taxpayers with tax-related crimes. Examples of common state criminal tax-related charges include:

  • Sales and Use Tax Evasion
  • Income Tax Evasion

Case Studies:

Mississippi 31-Count Felony Tax-Related Indictment

Facts: Client was indicted for 6 felony counts of tax evasion, 23 felony counts of making a fraudulent statement, 1 felony count of mail fraud, and 1 felony count of computer fraud. The criminal charges related to the Client’s tax preparation business and the Client’s alleged fraudulent deductions claimed when preparing tax returns, including deductions claimed on the Client’s personal state income tax return.

Resolution: DeWitt Law represented the Client, pro hac vice, and argued that the evidence compiled by the State of Mississippi did not prove the Client’s guilt beyond a reasonable doubt. Expert testimony from a Certified Public Accountant was used to prove that the Client’s claimed tax deductions were correct. The case resulted in a plea agreement. 30 counts were dismissed. The Client received no jail time, unsupervised probation for 5 years, and no felony convictions.

IRS Criminal Investigation Case #1

Facts: Client was under investigation by the Internal Revenue Service Criminal Investigation Department for alleged income tax evasion for over $5 million dollars in unreported bank account deposits. Two IRS CI Agents appeared at the Client’s home to ask questions.

Resolution: DeWitt Law represented the Client and argued that the evidence compiled by CI did not prove the elements of tax evasion beyond a reasonable doubt. The criminal investigation was concluded and the Client was not charged with any crimes.

IRS Criminal Investigation Case #2

Facts: Client was under investigation by the Internal Revenue Service Criminal Investigation Department for alleged income tax evasion related to a car dealership business. IRS CI Agents appeared at the car dealership to ask questions.

Resolution: DeWitt Law represented the Client and argued that the evidence compiled by CI did not prove the elements of tax evasion beyond a reasonable doubt. Amended tax returns were prepared and the criminal investigation was concluded.  The Client was not charged with any crimes. The IRS then initiated a civil field audit for the amended tax returns. This audit resulted in $0 in additional tax.

Tennessee Department of Revenue Criminal Investigation Case

Facts: Client was under investigation by the Tennessee Department of Revenue Special Investigations Department for alleged sales tax evasion. Agents appeared at the business to ask questions.

Resolution: DeWitt Law represented the Client and argued that the evidence compiled by the Department of Revenue did not prove the elements of tax evasion beyond a reasonable doubt. The investigation was concluded and the Client was not charged with any crimes.

IRS Fraud Investigation

Facts: Client owned a tax preparation business. The IRS initiated a fraud investigation regarding alleged fraudulent deductions claimed on tax returns prepared by the Client.

Resolution: DeWitt Law represented the Client and argued that the evidence held by the IRS did not prove by clear and convincing evidence that Client committed tax fraud. The investigation was closed and the Client was not subject to any tax fraud penalties.

 

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