20 Apr 23

What is Tax Evasion? Laws, Charges & Statute of Limitations

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Last Updated on: 5th August 2023, 07:54 pm

Understanding Tax Evasion: Protect Your Future with Spodek Law Group

As a responsible taxpayer, it is your duty to file your federal income tax returns every year. However, if you run your own business or have considerable assets, the process can be complicated and overwhelming. Even a seemingly innocent mistake can raise suspicion and trigger an IRS investigation. This is why it is crucial to have a clear understanding of tax evasion, its statute of limitations, and the penalties involved.

What Is Tax Evasion?

Tax evasion occurs when you deliberately avoid paying or underpaying your federal taxes. It’s illegal and carries severe consequences that include criminal charges and hefty penalties regardless of whether you’ve submitted the appropriate tax forms. The IRS can still determine if you owe any taxes from information acquired through third-party sources; however, they only consider it as tax evasion when they find that the failure to pay was intentional.

The Two Types of Tax Evasion

The IRS officially recognizes two types of tax evasions: evading payment and evading assessment. Evading payment involves hiding assets or money that should have been used to pay taxes such as by hiding money in an offshore account while evading assessment happens when you intentionally leave out assets and falsify records to avoid taxation.

Tax Evasion vs. Tax Fraud

While these terms are often used interchangeably, there’s a difference between them -tax fraud being more severe than tax evasion-. Tax evasion is considered a misdemeanor that happens when you refuse to pay your tax returns or fail to pay after an assessment which could lead up-to felony charges while on the other hand; Tax fraud occurs when one provides false records or lies in their return filings.

Statute Of Limitations

When facing a case related to tax evasion charges, it’s essential first to understand what Statute Of Limitations means- this refers specifically how long prosecutors have before filing charges against someone who has committed this crime type (tax evasion). Typically, the IRS gets three years to perform an audit on your returns. If they find that you may have concealed more than 25 percent of your income, the investigation time may double to six years. The time to file charges may also be extended for other reasons.

Tax Evasion Crime and Charges

Tax evasion can only be prosecuted if it is found to be intentional, and not just a difference in opinion or effort. The sentence you receive for tax evasion may be influenced by the amount of tax avoided as well as other factors. According to Section 7201 of the Internal Revenue Code, the IRS must prove that there is an unpaid tax liability, that you took action to evade taxes intentionally and that there was a special reason for evading taxes.

Experience Matters

Hundreds of millions of dollars in federal taxes go unreported every year due to tax evasions; this means it’s crucial first always having experienced lawyers like Spodek Law Group and Attorney Todd Spodek by your side when facing such charges- they have handled high-profile cases involving tax evasion with vast experience handling legal situations related specifically towards this crime type.

Why Choose Spodek Law Group?

Don’t let Tax Evasion charges ruin your life – contact Spodek Law Group today for legal representation that you can trust! With their deep understanding of law combined with professionalism ensures clients receive best possible outcome within their case while navigating complicated legal landscape surrounding taxation laws.

Spodek Law Group has helped many clients navigate through complex legal issues regarding both criminal & civil aspects related specifically towards taxation laws successfully representing them in high-profile cases involving Tax Evasion.

When facing Tax Evasion charges, timing matters significantly since waiting longer gives prosecution more time building up evidence against someone accused; therefore contacting Spodek Law group immediately increases chances receiving favorable outcomes within court proceedings.

Trust Experts

Facing Tax Evasion charges carries severe consequences including hefty fines, criminal charges and even jail time; therefore it’s essential having knowledgeable & experienced legal team on your side. Spodek Law Group and Attorney Todd Spodek have a deep understanding of the law committed to protecting clients’ rights/interests working tirelessly building strong defense strategies tailored specifically towards each case/circumstance.

Contact Us Today

If you are facing charges related to tax evasion, do not hesitate to contact Spodek Law Group today! With their professionalism, experience, dedication towards clients ensures that your case is in good hands. Contact them now for consultation taking first step towards protecting future!