Will I Go to Jail for Under-the-Table Fraud?

If you're asking this question, you're likely feeling anxious and uncertain about your situation. At Spodek Law Group, we understand the stress and fear that comes with facing potential criminal charges for under-the-table fraud. Our experienced attorneys are here to help guide you through this difficult time and fight for the best possible outcome in your case.

What is Under-the-Table Fraud?

Under-the-table fraud, also known as "off-the-books" employment, refers to paying employees in cash without properly reporting their wages to tax authorities. This practice is illegal and can result in serious criminal charges for both employers and employees.Some common examples of under-the-table fraud include:

Paying employees in cash without withholding taxes
Not reporting all cash income on tax returns
Misclassifying employees as independent contractors
Paying employees "under the table" to avoid payroll taxes
Failing to report tips or other cash income

While it may seem like a victimless crime, under-the-table fraud actually costs the government billions in lost tax revenue each year. The IRS and Department of Justice take these cases very seriously.

Potential Criminal Charges and Penalties

If you're caught engaging in under-the-table fraud, you could face a variety of criminal charges depending on the specifics of your case. Some potential charges include:

Tax evasion (26 U.S.C. § 7201)
Filing false tax returns (26 U.S.C. § 7206)
Failure to file tax returns (26 U.S.C. § 7203)
Conspiracy to defraud the United States (18 U.S.C. § 371)

The penalties for these crimes can be severe and often include jail time. For example:

Tax evasion carries up to 5 years in prison and $250,000 in fines
Filing false returns can result in up to 3 years in prison per count
Failure to file returns is punishable by up to 1 year in prison per year

In addition to criminal penalties, you may also face steep civil fines and be required to pay back taxes, interest, and penalties.

Factors That Influence Jail Time

So will you actually go to jail for under-the-table fraud? The answer depends on several factors:

Amount of unreported income - Larger dollar amounts are more likely to result in jail time
Length of time - Longer periods of fraud increase the chances of incarceration
Prior offenses - Having a criminal history makes jail more likely
Level of sophistication - More complex schemes tend to be punished more harshly
Cooperation - Working with investigators can sometimes help avoid jail
Quality of legal representation - Having an experienced attorney is crucial

While jail time is certainly possible, it's not guaranteed in every case. With a strong legal defense, it may be possible to avoid incarceration, especially for first-time offenders.

How We Can Help

At Spodek Law Group, we have extensive experience defending clients against under-the-table fraud charges. Our skilled attorneys know how to build a strong defense strategy tailored to the specifics of your case.Some ways we may be able to help include:

Negotiating with prosecutors for reduced charges or penalties
Challenging the evidence against you
Arguing for alternative sentencing options like probation
Helping you come into compliance and file amended returns
Exploring options like voluntary disclosure programs
Representing you in court and at sentencing

We understand how stressful this situation is. Our compassionate attorneys will guide you through every step of the process and fight tirelessly for the best possible outcome in your case.Don't face these serious charges alone. Contact Spodek Law Group today at 212-300-5196 for a free consultation. Let us put our experience and knowledge to work for you.

Common Defenses Against Under-the-Table Fraud Charges

When facing charges related to under-the-table fraud, there are several potential defenses that an experienced attorney may be able to use. At Spodek Law Group, we carefully examine every aspect of your case to build the strongest possible defense strategy.Some common defenses we may explore include:

Lack of Intent

To prove criminal tax fraud, prosecutors must show that you willfully and intentionally violated tax laws. If we can demonstrate that any errors or omissions were due to honest mistakes rather than deliberate fraud, it may be possible to avoid criminal charges.For example, in United States v. Pomponio, 429 U.S. 10 (1976), the Supreme Court held that "willfulness" in the context of criminal tax statutes requires proof of an intentional violation of a known legal duty.

Insufficient Evidence

The prosecution must prove their case beyond a reasonable doubt. We may be able to challenge the sufficiency or reliability of the evidence against you. This could include questioning the accuracy of financial records or the credibility of witnesses.

Statute of Limitations

The IRS generally has 3 years to audit returns and 6 years to pursue criminal charges in most cases. If the alleged fraud occurred outside this timeframe, we may be able to have the charges dismissed.

Entrapment

In some cases, overzealous investigators may cross the line into entrapment by inducing someone to commit a crime they otherwise wouldn't have. While rare, this can be a valid defense in certain situations.

Constitutional Violations

If your constitutional rights were violated during the investigation or arrest, we may be able to have certain evidence suppressed. This could include challenging improper searches or interrogations conducted without proper Miranda warnings.

Good Faith Belief

If you had a good faith belief that your actions were legal, even if mistaken, this may negate the willfulness required for criminal charges. The Supreme Court affirmed this defense in Cheek v. United States, 498 U.S. 192 (1991).Every case is unique, and the best defense strategy will depend on the specific facts and circumstances involved. Our experienced attorneys will carefully review your case to determine the most effective approach.

Steps to Take if You're Under Investigation

If you suspect you're under investigation for under-the-table fraud, it's crucial to take the right steps to protect yourself. Here's what we recommend:

Don't panic - Stay calm and avoid doing anything rash that could make your situation worse.
Stop any illegal activity - If you've been engaging in under-the-table payments, stop immediately.
Don't destroy evidence - Destroying or altering records could lead to additional charges for obstruction of justice.
Exercise your right to remain silent - Don't discuss your case with anyone except your attorney.
Secure legal representation - Contact an experienced criminal defense attorney as soon as possible.
Gather documentation - Collect any financial records or other documents related to your case.
Consider voluntary disclosure - In some cases, coming forward voluntarily can help mitigate penalties.
Prepare for financial impact - You may need to pay back taxes and penalties, so start planning accordingly.

Remember, anything you say to investigators can be used against you. It's crucial to have an experienced attorney advising you before speaking with any law enforcement officials.At Spodek Law Group, we can guide you through this process and help protect your rights every step of the way. Don't wait until it's too late - contact us today at 212-300-5196 for a confidential consultation.

The Importance of Experienced Legal Representation

When facing potential criminal charges for under-the-table fraud, having the right attorney can make all the difference in the outcome of your case. At Spodek Law Group, we bring decades of experience and a proven track record of success to every case we handle.Here's why choosing the right legal representation is so crucial:

Knowledge of Complex Tax Laws

Tax laws are notoriously complex and constantly changing. Our attorneys stay up-to-date on the latest developments in tax law and have a deep understanding of both state and federal statutes related to tax fraud.

Experience with Federal Investigations

We have extensive experience dealing with IRS criminal investigations and federal prosecutions. We understand the tactics used by investigators and prosecutors and know how to counter them effectively.

Negotiation Skills

In many cases, it's possible to negotiate with prosecutors for reduced charges or penalties. Our skilled attorneys know how to build leverage and negotiate from a position of strength to secure the best possible outcome for our clients.

Trial Experience

While we always strive to resolve cases favorably without going to trial, we're fully prepared to fight for you in court if necessary. Our attorneys have a strong track record of success in both state and federal courts.

Relationships with Prosecutors

Over years of practice, we've built professional relationships with many prosecutors. This can sometimes help in negotiating more favorable plea deals or alternative resolutions.

Understanding of Sentencing Guidelines

If conviction is unavoidable, we know how to navigate complex federal sentencing guidelines to argue for the most lenient sentence possible.Don't trust your future to an inexperienced attorney or try to handle this situation on your own. With so much at stake, you need a skilled legal team fighting in your corner.

Conclusion: There's Hope, But Act Quickly

Facing potential criminal charges for under-the-table fraud is undoubtedly scary. But remember - an investigation or even formal charges don't automatically mean you'll go to jail. With the right legal strategy, it may be possible to avoid incarceration or even have charges reduced or dismissed.However, it's crucial to act quickly. The sooner you secure experienced legal representation, the better your chances of a favorable outcome. Early intervention can sometimes even prevent charges from being filed in the first place.At Spodek Law Group, we're here to help guide you through this difficult time and fight tirelessly for your rights and freedom. Don't face this alone - contact us today at 212-300-5196 for a free, confidential consultation. Let us put our experience and skill to work for you.Remember, your future is worth fighting for. With Spodek Law Group on your side, you'll have a powerful ally in your corner every step of the way.