Blog
Tax Evasion Charges in Florida: Penalties and Working with a Defense Attorney
Contents
Tax Evasion Charges in Florida: Penalties and Working with a Defense Attorney
Getting charged with tax evasion in Florida can be scary. The penalties are severe – we’re talking felony charges, years in prison, and huge fines. But having an experienced defense attorney on your side can make all the difference. This article will walk you through what to expect if you’re facing tax evasion charges in Florida, the potential penalties, and why working with a lawyer is so important.
What is Tax Evasion?
Tax evasion refers to illegally avoiding paying taxes by intentionally underreporting income, overstating deductions, failing to file returns, or other fraudulent activities. Simply making a mistake doesn’t necessarily mean you committed evasion. The government has to prove you willfully intended to break the law.Some examples of tax evasion include:
- Not reporting cash income from a business or side job
- Claiming fake or inflated business expenses
- Hiding money in offshore bank accounts
- Lying about your state of residence to avoid certain taxes
Evasion is different from legal tax avoidance strategies like taking legitimate deductions. The key is intent – evasion requires knowingly deceiving the government.
Tax Evasion Penalties in Florida
In Florida, both the state and federal government can bring criminal charges for tax evasion. This includes evading income taxes, payroll taxes, sales taxes, and more.Here’s an overview of potential penalties:
State Tax Evasion
- Third Degree Felony – Evading $301 to $20,000 in state taxes is a third degree felony. This can mean up to 5 years in state prison and fines up to $5,000.
- Second Degree Felony – Evading $20,001 to $100,000 in taxes is a second degree felony. This can mean up to 15 years in prison and fines up to $10,000.
- First Degree Felony – Evading over $100,000 in taxes is a first degree felony. This can mean up to 30 years in prison and fines up to $10,000.
The state can also impose civil fines up to 200% of the unpaid taxes.
Federal Tax Evasion
Under Internal Revenue Code Section 7201, federal tax evasion penalties include:
- Up to $100,000 in fines for individuals, or $500,000 for corporations
- Up to 5 years in federal prison
- Repaying owed taxes, plus interest and other penalties
- Paying prosecution costs
As you can see, the consequences for tax evasion convictions can be severe. The penalties quickly escalate based on the amount of tax owed.
Why Hiring a Defense Attorney is Crucial
Facing tax evasion charges without an attorney is extremely risky. The tax laws are incredibly complex, and the IRS has far more resources than any individual. An experienced tax crime lawyer levels the playing field.Here are some key ways a lawyer can defend against evasion charges:
- Argue you made an honest mistake – If there’s no clear evidence you intentionally avoided taxes, the charges may get dismissed. A lawyer can argue you misunderstood what counts as income, made a math error, etc.
- The statute of limitations expired – The IRS typically has 3 years to file charges after you file a return. If it’s been longer, the charges could get thrown out.
- You lacked knowledge of the law – Not being aware of specific tax rules could help show you didn’t willfully break them. An attorney can argue you acted in good faith.
- Negotiate with the IRS – In some cases, it may be possible to settle with the IRS pre-charge and keep penalties civil instead of criminal.
An experienced tax defense lawyer understands how to build the strongest defense based on the nuances of your case. They know how to argue against the “willfulness” requirement and exploit any holes in the prosecution’s claims.
What to Expect if You’re Charged with Tax Evasion
If you’ve been contacted by the IRS or notified you’re facing criminal tax evasion charges, here’s what to expect and how a lawyer can help:Audit or Investigation – If the IRS suspects tax fraud, they may conduct an audit or criminal investigation. It’s important not to speak to the agents without your lawyer present – anything you say can be used against you. A lawyer can protect you from accidentally self-incriminating.Arrest Warrant – Once sufficient evidence is gathered, an arrest warrant may be issued. Hiring an attorney immediately is crucial – they may still be able to negotiate with prosecutors or work to get charges reduced or dropped.Criminal Trial – If charges are filed, your lawyer will defend you in criminal court before a judge or jury. They will aim to get acquittals on charges or convictions on lesser offenses.Sentencing – If convicted, your lawyer can advocate for minimized penalties and prison time. They may argue for probation and restitution instead of imprisonment.Appeal – After sentencing, a lawyer can appeal the conviction or sentence if there are grounds to dispute errors made at trial.Having an experienced tax evasion defense lawyer with you every step of the way can make an enormous difference in the outcome of your case.
Finding the Right Tax Evasion Defense Attorney
If you’re facing tax evasion charges in Florida, it’s critical to have the best legal representation possible. Here are some tips for choosing the right tax defense lawyer:
- Find an experienced tax crime specialist – You want someone who focuses specifically on tax cases and fraud charges, not a general practice lawyer.
- Look for knowledge of both state and federal law – Since Florida pursues charges under its own laws and the IRS code, your lawyer needs expertise in both.
- Consider their track record – Look for lawyers with a proven history of getting tax evasion charges reduced or dismissed pre-trial. Check reviews and case results.
- Meet for a consultation – Schedule a consultation to discuss your case details and assess if you feel comfortable with the lawyer.
- Compare fee structures – Find out what the total fees may be and what billing models they use. Flat fees or hourly billing are common.
Don’t take chances with your freedom and finances. An skilled tax evasion defense lawyer can make all the difference in avoiding harsh penalties. With the right legal support, many cases can be resolved through civil means only or kept out of criminal court entirely. If charges do get filed, an attorney experienced in fighting the IRS will aggressively defend your rights.
Conclusion
Dealing with tax evasion charges in Florida is scary. But having a knowledgeable defense attorney gives you the best chance at a favorable outcome. An attorney can argue against the “willfulness” requirement, exploit technicalities like statutes of limitation, and negotiate with prosecutors. For the best chance of avoiding criminal prosecution or minimizing penalties, hire an experienced tax crime lawyer as soon as possible after learning about an investigation or charges. Fighting the government alone rarely ends favorably in tax evasion cases with such severe penalties on the line. With the right legal representation, you can move forward and put this ordeal behind you.