Criminal Defense Lawyers

Navigating Arkansas’ Sentencing Guidelines for Tax Evasion Offenses

Navigating Arkansas’ Sentencing Guidelines for Tax Evasion Offenses

Arkansas Tax Evasion Laws: The Statutes You Need to Know

In Arkansas, tax evasion falls under the state’s laws prohibiting “failure to pay tax, file returns, keep records, etc.” The relevant statute is Arkansas Code 26-18-201, which outlines the various offenses and their classifications as misdemeanors or felonies.

Here are the key tax crimes defined under this statute:

Failure to Pay Tax or File Returns (§26-18-201(5))

• Failing to pay tax owed to the state
• Failing to file required tax returns
• Classified as a Class A misdemeanor

Failure to Keep Records (§26-18-201(6))

• Failing to keep proper records for tax purposes
• Classified as a Class A misdemeanor

Tax Evasion (§26-18-201(7)(A))

• Willfully attempting to evade or defeat any tax imposed by Arkansas law
• Classified as a Class D felony

Willful Failure to Collect/Account for Tax (§26-18-201(7)(B))

• Willfully failing to collect, account for, or pay over any tax
• Classified as a Class D felony

As you can see, tax evasion itself is considered a Class D felony under Arkansas law. This is the most serious offense, as felonies typically carry harsher penalties than misdemeanors. The statute also outlines potential punishments, including fines up to $10,000 and imprisonment up to 6 years for Class D felonies like tax evasion. However, these are just the statutory maximums. Your actual sentence will be calculated based on Arkansas’ sentencing guidelines, which take into account multiple factors related to the offense and your criminal history. Let’s take a closer look at how that works.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

Understanding Arkansas’ Sentencing Guidelines for Tax Crimes

Like many states, Arkansas has implemented standardized sentencing guidelines to promote consistency and proportionality in criminal sentencing. The guidelines establish a matrix of “presumptive sentences” based on two key factors:

1. The offense level, which is a score representing the severity of the crime
2. The offender’s criminal history

For tax evasion cases, the offense level is determined using the Fraud guideline in Section 5 of Arkansas’ Criminal Offenses guideline manual.2 This guideline scores the offense based on characteristics like:

• The tax loss amount involved
• Whether sophisticated means were used
• If the offense violated a position of trust
• The offender’s role in the offense (e.g. leader, minor participant)

The offense is then assigned a base level, which can be adjusted upwards or downwards based on those specific characteristics. Tax loss amount is usually the biggest factor – the higher the loss, the higher the offense level.

For example, let’s say an offender is convicted of evading $120,000 in Arkansas state taxes, which is in the $100,000 to $500,000 loss range. The base offense level for that amount is 20.2 If the offense also involved sophisticated means like use of offshore accounts, that would add 2 more levels for a total offense level of 22. The other key factor is the offender’s criminal history category, which is scored from I to VI based on the number and severity of any prior convictions and sentences. Someone with no criminal record would be a Category I. Once the offense level and criminal history are calculated, the judge consults the Sentencing Table to determine the presumptive guideline range.3 For an offense level 22 and criminal history category I, the range is 41-51 months of imprisonment. However, it’s important to note that these are just advisory guidelines. The judge maintains discretion to depart from the range if there are aggravating or mitigating circumstances.

Hiring an experienced Arkansas tax crime defense lawyer is crucial to arguing for a sentence towards the lower end or a departure below the range. To illustrate the impact criminal history can have, let’s look at the same $120,000 tax evasion scenario but with a category III criminal history. The guideline range jumps from 41-51 months all the way up to 57-71 months.3 Your prior record can significantly increase your exposure.

So in summary, the Arkansas sentencing guidelines calculate a presumptive range based on:

1. Scoring the tax evasion offense level based on characteristics like tax loss amount
2. Determining the offender’s criminal history category
3. Cross-referencing the offense level and criminal history on the Sentencing Table

While the guidelines standardize the process, an experienced defense attorney can make a huge difference in arguing for a lower offense level scoring and mitigating factors to reduce the ultimate sentence. With that framework in mind, let’s look at some common scenarios and what kind of sentences offenders may face under the Arkansas guidelines.

Example Arkansas Tax Evasion Sentencing Scenarios

To give you a better sense of how sentencing can play out, here are some hypothetical examples of different tax evasion cases and potential sentences:Example 1: First-Time Offender, $75,000 Tax Loss

• Offense: Tax Evasion under §26-18-201(7)(A)
• Tax Loss: $75,000
• No aggravating factors like sophisticated means
• Offender has no prior criminal convictions (Criminal History I)

Likely Sentence:

• Base Offense Level 18 (tax loss $40,000-$100,000)
• No adjustments for lack of aggravating factors
• Final Offense Level 18
• Guidelines range with Criminal History I: 27-33 months
• Likely sentence towards lower end, possibly 27-30 months

For a first-time offender with a relatively lower tax loss amount and no aggravating factors, the guidelines range starts out relatively low at 27-33 months. An effective defense could potentially argue for a sentence even lower than that range.

Example 2: Offender with Prior Record, Higher Tax Loss

• Offense: Tax Evasion under §26-18-201(7)(A)
• Tax Loss: $425,000
• Offense involved sophisticated means (+2 offense levels)
• Offender has prior convictions putting them in Criminal History III

Likely Sentence:

• Base Offense Level 22 (tax loss $350,000-$550,000)
• +2 levels for sophisticated means = 24
• Final Offense Level 24
• Guidelines range with Criminal History III: 63-78 months
• Likely sentence towards higher end, e.g. 70-78 months

With a higher tax loss amount, use of sophisticated means, and a prior criminal record, this offender is facing a much higher guidelines range of 5-6 years. The defense would have an uphill battle to mitigate below that range.

Example 3: Business Owner, Failure to Pay Over Taxes

• Offense: Willful Failure to Collect/Account for Tax under §26-18-201(7)(B)
• Tax Loss: $225,000 (from willful failure to pay over sales taxes)
• Offender was the owner of the business
• No prior criminal record (Criminal History I)

Likely Sentence:

• Base Offense Level 20 (tax loss $100,000-$250,000)
• Potential adjustments for aggravating role, violating a position of trust
• Assuming two-level adjustment, Final Offense Level 22
• Guidelines range with Criminal History I: 41-51 months
• Likely sentence in the middle, e.g. 45-48 months

For this business owner who willfully failed to pay over sales taxes owed, the guidelines range starts in the 41-51 month range. Adjustments for their aggravating role could push it towards the higher end. An argument could be made for a role reduction as a first-time offender. These are just examples to illustrate how different factors can impact sentencing under the Arkansas guidelines. Every case is highly dependent on the specific facts and circumstances. The important takeaway is that an experienced Arkansas tax crime defense lawyer is essential to:

1. Arguing for the lowest possible offense level scoring based on the facts
2. Seeking adjustments for any mitigating factors
3. Making a strong case for a sentence towards the lower end of the range or a departure below it

With so much at stake and the guidelines being just advisory, you want the best representation possible to minimize the consequences. Don’t take chances with your future. Now let’s look at some key strategies and considerations for building an effective defense against Arkansas tax evasion charges.

Building an Effective Arkansas Tax Evasion Defense

Being charged with tax evasion can feel overwhelming, but remember – you have constitutional rights and there are many potential defenses available. Here are some of the key strategies your Arkansas tax crime lawyer may pursue:

Challenging the “Willfulness” Element

For charges under §26-18-201(7)(A) and (B), the prosecution must prove that your conduct was “willful” – meaning you knew your actions were unlawful, not just that you were negligent or made a mistake. Lack of willfulness is a very common defense. Your lawyer may argue that you had a good-faith belief that you were complying with the law based on a plausible interpretation of complex tax rules. Or that there was no deliberate attempt to evade taxes, just sloppy bookkeeping.

Questioning the Tax Loss Calculation

As we saw, the alleged tax loss amount is a huge driver of your offense level and potential sentence under the guidelines. Your lawyer will scrutinize how the IRS or state auditors calculated that number to look for any errors or improper assessments that can be challenged. Reducing the tax loss figure even modestly can have a major impact by lowering your offense level and guidelines range. This is a critical area for your defense.

Arguing for Mitigating Factors and Departures

Even if you are convicted, your lawyer can fight for adjustments and departures from the guidelines for mitigating factors like:

• Your role and degree of culpability compared to co-defendants
• Efforts towards compliance and paying back taxes owed
• Exceptional circumstances reducing your culpability
• Acceptance of responsibility through a plea agreement

Presenting a strong package of mitigating evidence and legal arguments is key to trying to reduce your ultimate sentence.

Negotiating a Favorable Plea Agreement

In some cases, your best option may be to pursue a plea agreement with the prosecution. An experienced tax crime lawyer can negotiate a plea to reduced charges or advocate for sentencing terms like probation rather than incarceration. The key is having skilled representation to leverage the strengths of your case and craft a plea that minimizes the consequences as much as possible.

Challenging the Charges on Constitutional Grounds

Depending on the circumstances, there may be grounds to challenge the charges themselves on constitutional issues like:

• Unlawful searches and seizures violating your 4th Amendment rights
• Prosecutorial misconduct violating your 5th Amendment due process rights
• Improper grand jury proceedings

These types of challenges can potentially get charges reduced or even dismissed if successful. The bottom line is that you have rights, and an experienced Arkansas tax crime defense lawyer will explore every possible avenue and strategy to avoid a conviction or mitigate the sentencing consequences.Tax charges are extremely serious, but a skilled legal team can make a huge difference. Don’t just plead guilty and accept the maximum penalties – get the representation you deserve to fight for the best possible outcome.

When to Hire an Arkansas Tax Crime Lawyer

If you’re under investigation or have been charged with tax evasion or related offenses in Arkansas, it’s absolutely critical that you hire a qualified tax crime lawyer as soon as possible. The consequences are far too severe to try and navigate this alone. An experienced tax crime attorney can start protecting your rights and building your defense strategy from day one. Look for a firm that specializes in Arkansas tax crime cases and has extensive experience in areas like:

• IRS and state tax audits, investigations, and criminal prosecutions
• Negotiating favorable plea agreements
• Challenging forensic accounting evidence
• Mitigating sentencing arguments and guidelines calculations
• Constitutional challenges to criminal tax charges

You’ll also want a firm that has represented clients in Arkansas courts at all levels – from the state district courts all the way up to the Arkansas Supreme Court if needed. Tax crime cases are extremely complex, so you need a true specialist in this area of law, not just a general criminal defense practitioner. Your entire future could be at stake, so it’s worth investing in the best representation possible.

The sooner you involve a qualified Arkansas tax crime lawyer, the sooner they can start building the strongest possible defense strategy and protecting your rights. The time to hire is as soon as you have any inkling that you may be under investigation or face charges. Don’t wait until it’s too late – get the legal representation you need now and maximize your chances of avoiding conviction or minimizing the sentencing consequences.