Maryland Tax Lawyer Defending Clients In Tax Evasion Cases
Tax evasion generally involves a deliberate attempt by an individual or entity to evade paying taxes by illegal means. In most situations, the taxpayer will intentionally misrepresent their taxable income to the IRS in order to reduce or eliminate their tax liability. Tax evasion can involve a number of different dishonest actions, including failing to declare all of your income, profits or gains, over reporting deductions and expenses, sheltering money or assets in foreign or offshore bank accounts, maintaining two sets of books, failing to file required tax returns and many other illegal activities.
In the business context, the IRS has identified a number of different schemes employers often use to evade taxes. These employment tax evasion schemes can take a variety of forms, including “pyramiding” of employment taxes, employee leasing, paying employees in cash, preparing false payroll tax returns and failing to file employment tax returns.
Tax Evasion Comes with Serious Consequences
Attempting to evade taxes through illegal means can have very serious consequences. In the criminal context, tax evasion ordinarily involves a violation of 26 USC § 7201. Section 7201 provides that any person who “willfully attempts to evade or defeat” their tax obligations shall be guilty of a felony. The penalties imposed upon conviction include up to five years in prison and/or a fine of up to $100,000 for individuals and $500,000 for corporations. Moreover, once the IRS Criminal Investigation (CI) Division has completed its case, the CI will transfer the matter back to the IRS civil division. The civil division will determine the amount of back taxes to be assessed and will typically impose a civil tax fraud penalty in addition to any criminal fines.
Being the target of an income tax evasion investigation is a very difficult and frightening experience. The IRS takes tax evasion very seriously and special agents in the IRS CI Division will often use aggressive and far-reaching tactics in an effort to enforce the U.S. tax laws. If you are currently under criminal investigation for tax evasion or have reason to believe that the IRS may launch an examination of your activities, it is very important to discuss your case with a tax law attorney experienced in federal tax evasion defense. Your lawyer will carefully review your case and take swift action to minimize your exposure and protect your legal rights.
Thorn Law Group Can Help
The tax attorneys at Thorn Law Group have decades of collective experience defending clients in all types of criminal tax investigations. Our firm represents individual taxpayers and businesses in Baltimore, Rockville, Silver Spring and other locations throughout Maryland. We also represent clients across the nation and around the world in complex, high-stakes criminal and civil tax matters. Our attorneys understand what is at risk and are fully prepared to mount an aggressive defense against all charges that you may be facing.
To learn more about our firm and the services that we offer, we encourage you to schedule a confidential consultation in our Maryland office by contacting Kevin E. Thorn, Managing Partner at (240) 235-5096 or email@example.com.