Tips To Defend Tax Evasion Charges
Tax evasion is one of the most serious offenses as far as the government is concerned. If you're being accused of this crime, it's probably time to start looking for a lawyer. Below are some of the defenses you can use when facing such charges.
Mistake
Tax is a complicated area of law, and the public is not always aware of the complexities of tax calculations. It is fairly easy for an entrepreneur to make a mistake and underreport their taxes. That is why you will only be convicted of tax evasion if the prosecution can prove that you intentionally evaded tax. You may escape the criminal charges if you can prove that you made an honest mistake.
Professional Advice
As mentioned above, many people are not conversant with tax laws. That is why many people hire tax professionals, such as accountants, to calculate their taxes and submit their returns. In fact, if it is advisable to do this if you have a business. That way, if the Internal Revenue Service (IRS) accuses you of tax fraud, you can explain to them that you relied on the advice of your professionals.
Voluntary Disclosure
Many people fail to submit full tax returns unintentionally. The IRS knows this, which is why they rarely go after those who realize their mistakes and voluntarily disclose their true tax status. Therefore, if you have realized your tax mistake, you should voluntarily disclose your mistakes to the IRS; they may just grant you clemency.
No Tax Deficiency
Just as it is easy to make a mistake when paying taxes, it is also easy to make a mistake and fail to declare some of your expenses or deductions. Therefore, you should scrutinize all of your transactions and declarations if you have been accused of tax fraud. If you are lucky, you may realize that you didn't report some of your expenses, and you don't owe any tax at all. In such cases, the IRS won't have any case against you because you can only be charged with tax evasion if you owe the government money.
Statute of Limitations
There is a statute of limitations that determines how far back the IRS can go if they accuse you of tax evasion. The statute of limitations depends on various factors, including whether or not you filed your taxes, the nature of your tax crime, and the discrepancy between the declared and true tax. You can use the expiry of the statute of limitations if the discrepancy was relatively small, and it was a long time ago.
For more information and assistance, contact your local criminal defense lawyer today.