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What is a tax crime?

Tax crime refers to any offense that violates the Internal Revenue Code (IRC). Tax crime investigations are handled by the Internal Revenue Services (IRS), which launches thousands of tax-related investigates every year. With an aggressive force of special agents devoted to uncovering tax fraud and tax evasion schemes, the IRS takes tax crimes very seriously.

Tax evasion and tax fraud are two of the most common tax crimes. If convicted of tax fraud, you may be subject to 3 years in prison and a $250,000 fine. Tax evasion is punishable by 5 years in a federal prison and a $250,000 fine. If a business is convicted, this fine may be doubled.

Common Evasion Schemes

There are many tax evasion schemes. Some are relatively simple—such as failing to report a portion of your income on a tax return; however, keep in mind that passively failing to pay your taxes is not the same as evading. You cannot be convicted if you do not willfully evade payment.

On the other hand, some schemes are elaborate—such as those involving offshore bank accounts or complicated business plans. In short, it is a crime to avoid paying your taxes by keeping money in secretive bank accounts. Although it is not technically illegal to have an offshore bank account, the IRS is extremely wary of foreign banking.

Employment evasion schemes are also common. Employers are responsible to withhold income tax from employees’ paychecks. If your employer withholds money but fails to remit payment to the IRS, he/she may be guilty of tax evasion. Other times, businesses pay their employees with cash, which allows them to avoid tax payments by keeping employees’ salaries off the record.

Need a tax crime lawyer? We can help!

At the firm, we are whole-heartedly dedicated to giving you top-notch legal assistance. Let our firm give you peace of mind by knowing your case is in reliable hands. Whether you’re facing an investigation or a criminal charge, our firm is ready to help. Call our office to schedule a case consultation. The sooner we hear from you, the faster we can begin creating an aggressive and effective case strategy to keep your record clean.

If you’ve been charged with a criminal offense related to nonpayment of your taxes, you may be subject to serious penalties. Call Okabe & Haushalter for help now!