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Colorado Tax Fraud Lawyers
Dealing with tax fraud allegations in Colorado can lead to serious penalties, but experienced legal help can protect your rights. This guide examines Colorado tax fraud laws, defense strategies, and how to find qualified local attorneys.
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Colorado Tax Fraud Laws
The Colorado Department of Revenue aggressively prosecutes tax crimes under both state and federal statutes. Charges may include:
- Tax evasion – Intentionally avoiding tax obligations through deception or concealment.
- Tax fraud – Knowingly falsifying information on returns to reduce tax liability.
- Identity theft – Using someone else’s identity to file false returns.
- Employment tax fraud – Misclassifying employees or pocketing payroll taxes.
Penalties range from fines and probation to felony convictions with years in prison. The state also assesses substantial interest and penalties on unpaid taxes.
Tax Evasion Laws
Under C.R.S. 39-21-118, Colorado tax evasion over $5,000 within a 6-month period, or over $20,000 total, becomes a felony. This includes using deception, false payroll reporting, or other fraud to intentionally avoid tax obligations. Jail time can extend up to 12 years depending on amounts evaded.
Tax Fraud Laws
The state prosecutes false filings under C.R.S. 39-21-118 as well. Knowingly providing materially false information to reduce taxes owed constitutes a felony. Negligent filings may lead to misdemeanor charges and fines up to $50,000.
Identity Theft
Using someone else’s personal information to file fraudulent returns carries felony identity theft charges per C.R.S. 18-5-902. This includes applying for refunds in another person’s name. Penalties include 4-12 years imprisonment.
Employment Tax Fraud
Businesses face prosecution for intentionally misclassifying employees as contractors or failing to pay collected payroll taxes. The state treats these actions as forms of tax evasion under C.R.S. 39-21-118.
Federal Tax Fraud Laws
In addition to state statutes, Colorado prosecutors can bring charges under expansive federal tax laws such as:
- 26 U.S. Code § 7201 – Tax evasion
- 26 U.S. Code § 7206 – Fraud and false statements
- 26 U.S. Code § 7202 – Willful failure to collect or pay over tax
The IRS frequently assists Colorado tax fraud investigations and may bring parallel federal charges.
Hiring an Experienced Tax Fraud Lawyer
Facing tax crime allegations can be overwhelming. An experienced Colorado tax fraud attorney can help protect your rights and future. Key benefits of qualified legal representation include:
- Negotiating with prosecutors for reduced charges or penalties
- Contesting asset seizures and tax bills from alleged fraud
- Navigating complex state and federal tax laws and procedures
- Developing an optimized defense strategy based on the specifics of your case
- Obtaining experts to validate tax positions or discredit state evidence
- Exploring amnesty programs that avoid criminal prosecution
Without a skilled tax fraud lawyer, the government can steamroll individuals and businesses in audits and investigations. Qualified legal counsel levels the playing field.
Building an Effective Tax Fraud Defense
An experienced tax fraud attorney can raise a variety of defenses to contest the state’s allegations, such as:
- No intentional wrongdoing – Argue any errors were accidental, not willful tax fraud.
- Reliance on professionals – Cite good faith reliance on advice of tax preparers or advisors.
- Negligent preparers – Blame unscrupulous or unqualified tax preparers.
- Constitutional violations – Challenge procedural missteps violating your rights.
- Improper audits – Contest audit methods violating IRS or state procedures.
Skilled lawyers exploit every viable defense angle. This can lead to reduced charges, lower penalties, or even full acquittals.
Common Tax Fraud Penalties
If convicted of Colorado tax fraud, common civil and criminal penalties include:
- Up to 12 years imprisonment for felony tax evasion
- Fines up to $100,000 for individuals, $500,000 for corporations
- Probation or community service requirements
- Restitution for unpaid taxes
- Asset forfeiture – Seizure of property
- Loss of professional licenses
- Ineligibility for tax amnesty programs
In addition, tax fraud creates a black mark with state revenue departments that invites greater audit scrutiny for years. Skilled legal advocacy is necessary to mitigate these consequences.
Colorado Tax Fraud Lawyers
Dealing with tax fraud accusations in Colorado can be extremely stressful. The criminal penalties and civil fines for both state and federal tax crimes are severe. If you are under investigation or have been criminally charged, retaining experienced legal counsel is critical to protect your rights and future.
Common Tax Fraud Offenses
Federal and Colorado tax authorities pursue both individuals and businesses for various types of tax fraud including:
- Tax Evasion – Willfully attempting to evade assessed taxes through deceit, concealment or other intentional unlawful means.
- Filing a Fraudulent Return – Intentionally falsifying information or omitting data on a tax return to reduce tax liability.
- Employment Tax Fraud – Intentional failure to account for and pay required payroll taxes.
- Identity Theft – Using a stolen identity or false identity to file fraudulent tax returns for refunds.
Degree of Charges
Tax fraud charges can range from misdemeanors to serious felonies depending on the circumstances of the case. Factors like the amount of tax loss to the government, sophistication of methods used, duration of misconduct and other elements impact the severity of potential charges.
Criminal Penalties
At the federal level, criminal tax fraud convictions under 26 U.S. Code § 7201 can result in:
- Up to 5 years in prison
- Fines up to $250,000 for individuals or $500,000 for corporations
- Mandatory restitution to the IRS
- Probation or supervised release after incarceration
Under Colorado state law, convictions for tax fraud and evasion can lead to incarceration, fines, probation and other harsh penalties depending on the severity of the charges.
Civil Fines and Penalties
In addition to criminal punishment, the IRS and Colorado Department of Revenue can impose substantial civil fines for tax fraud including:
- 75% civil fraud penalty on the portion of underpayment due to fraud
- 20% accuracy-related penalty on underpayments over certain thresholds
- Failure to file, failure to pay, and late payment penalties
- Interest charges on unpaid balances
Tax Fraud Defense Strategies
If you are accused of tax fraud, key defense strategies tax attorneys may use include:
- Contesting that intent to break tax laws existed
- Arguing mistakes resulted from poor record-keeping, not willful deception
- Disputing the tax deficiency calculations
- Challenging procedural missteps by investigators
- Seeking to minimize penalties and interest
- Filing amended returns to correct honest errors
An experienced tax litigation lawyer can carefully construct a defense to defeat charges or mitigate penalties.
Hiring an Aggressive Tax Attorney
If facing any criminal or civil tax fraud allegations in Colorado, it is critical to retain an aggressive tax fraud defense attorney immediately. Skilled lawyers have the expertise to protect your rights and build the strongest case possible. Key attributes to seek in a tax attorney include:
- In-depth knowledge of federal and Colorado tax laws and procedures
- Extensive experience specifically handling tax fraud defense cases
- Proven track record of positive outcomes for clients
- Reputation for tenacious and ethical representation
- Commitment to minimizing the penalties you may face
Do not delay in seeking experienced legal counsel if accused of tax evasion or fraud.
Contact a Tax Attorney Today
The attorneys at [Law Firm Name] have the skills and determination to protect clients facing tax fraud investigations in Colorado. We know how to build a strong defense against state and federal tax authorities. Call [phone #] or contact us online for a free consultation if you need legal representation.