Criminal Defense Lawyers

Tax Fraud and Tax Evasion Lawyers: Your Guide to Understanding the Law

Dealing with accusations of tax fraud or tax evasion can be an incredibly stressful and confusing time. As a taxpayer, you have a responsibility to fully and honestly report your income, deductions, and other tax-related information. However, mistakes happen. Or perhaps you relied on poor professional advice. Regardless of how you wound up being investigated or charged, working with an experienced tax fraud defense attorney is essential to protect your rights and build the strongest possible defense.This article provides an overview of key things to know if you are facing allegations of tax fraud or evasion. It also discusses how an attorney can help defend you and mitigate penalties.

Understanding Tax Evasion vs. Tax Fraud

Tax evasion and tax fraud are often used interchangeably, but they refer to distinct offenses:Tax Evasion: Tax evasion involves illegally avoiding paying taxes that you rightfully owe by intentionally underreporting income, overstating deductions, failing to file returns, or similar actions. Essentially, tax evasion means owing taxes but deliberately trying not to pay them.Tax Fraud: Tax fraud is making false statements or misrepresenting information on your tax documents and returns. Examples include falsely claiming deductions or exemptions you don’t qualify for. Tax fraud is considered a more severe offense than basic tax evasion.Both tax evasion and tax fraud can lead to civil penalties and criminal prosecution. However, the associated fines and potential jail time are typically more severe for tax fraud convictions.

Common Ways Tax Evasion and Fraud Occur

There are many ways that taxpayers can find themselves accused of tax evasion or fraud. Some of the most common scenarios include:

• Failing to report cash income from side jobs, tips, or other unreported earnings
• Intentionally underreporting business income and profits
• Falsely claiming deductions and exemptions you don’t qualify for
• Hiding money and assets in offshore bank accounts
• Using a fake Social Security number to avoid reporting earnings
• Filing tax returns late or not at all

In some cases, taxpayers are simply unaware of reporting requirements. For instance, if you do freelance or gig economy work, you may not realize all your earnings are taxable. However, intentionally hiding income or assets is illegal.

Consequences and Penalties

If convicted of tax evasion or fraud, you face paying back taxes plus substantial interest and penalties. You can also receive jail time:

• Tax evasion penalties include owing up to 75% of the unpaid taxes plus interest. Jail sentences up to 5 years may apply in criminal cases.
• Tax fraud carries fines of up to $250,000 and up to 3 years in prison for individuals. Businesses face fines up to $500,000.

In particularly severe criminal tax fraud cases with very high unpaid tax amounts, penalties can be much harsher.

How a Tax Fraud and Evasion Lawyer Can Defend You

Facing tax evasion or fraud charges is frightening. The potential financial and legal consequences can destroy lives and livelihoods. An experienced tax fraud defense attorney thoroughly understands state and federal tax codes and how to build a strategic defense by:

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.

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• Carefully examining the details of your case – Your attorney will review the specifics of your situation to identify potential weaknesses in the prosecution’s argument and evidence.
• Disputing inaccurate tax calculations – In many cases, the IRS or state tax agency has made errors in determining taxes owed. Your lawyer can dispute inflated balances.
• Arguing unauthorized investigation methods – If fraud investigators used inappropriate interrogation tactics or obtained records illegally, this evidence can potentially be thrown out.
• Claiming good faith attempts to comply – Demonstrating you made efforts to properly file and pay taxes can help show you did not intentionally commit fraud or evasion.
• Seeking reasonable cause exceptions – If failure to file timely returns or underpayment stemmed from circumstances out of your control, penalties may be waived.
• Negotiating reduced charges or penalties – Based on case specifics, your attorney may be able to negotiate charges being lessened or penalties lowered.

Reputable tax fraud lawyers have successfully defended business owners, individuals, and even celebrities against tax evasion and fraud charges. An experienced attorney can make all the difference in how your case progresses and the outcome you receive.

Choosing the Best Tax Fraud and Evasion Lawyer

If you are being audited or investigated for tax fraud or evasion, or have already been charged, seeking legal representation immediately is critical. Not all tax attorneys have in-depth experience specifically with fraud and evasion cases, which involve specialized knowledge and defense strategies.Look for a lawyer with extensive experience defending tax fraud allegations and a proven record of favorable case results. Understanding both state and federal tax codes is also vital. Be sure to ask about the lawyer’s specific credentials, case experience, and strategy for handling your unique situation.Additionally, choose a tax fraud attorney you feel comfortable with and who listens attentively to the details surrounding your tax issues. You need an advocate who will fight relentlessly on your behalf.

Take Action With the Help of a Tax Fraud Lawyer

Dealing with accusations of tax evasion or fraud feels confusing and terrifying. The potential consequences seem unthinkable. Fortunately, developing an aggressive legal defense strategy can help mitigate charges and penalties. Don’t go through this alone. Contact an experienced tax fraud lawyer for dedicated support and guidance during this difficult time. With an attorney on your side, you can take action to protect yourself, your family, and your financial future.