Tallahassee Attorneys Explain How to Avoid Tax Evasion Convictions

Paying taxes is never fun, but evading taxes can lead to serious criminal charges. As a Tallahassee resident, what can you do to avoid tax evasion convictions? Local attorneys explain common mistakes people make, potential defenses, and smart strategies to stay in compliance.

Common Tax Evasion Charges

According to IRS data, tax evasion accounts for over $40 billion in lost revenue every year. Prosecutions are on the rise, with charges ranging from failure to file to fraudulent returns. Here are some of the most common accusations Tallahassee attorneys see:

• Failure to file – Simply not filing a return by the deadline can lead to civil fines and criminal charges if willful. Even if you owe no taxes, not filing is illegal.
• Filing a false return – Lying about income, deductions, credits, etc. can constitute tax evasion. Even small fabrications are felonies.
• Hiding income – Failing to report cash earnings, offshore accounts, or other assets is a red flag for evasion. IRS can access records from banks, employers, etc.
• Fake deductions – Claiming false business expenses, charitable gifts, medical costs and more will not slip by the IRS. They catch inflated or fake write-offs.
• Employment tax evasion – Business owners who collect payroll taxes but keep the money owe trust fund taxes. IRS pursues this aggressively.
• Tax shelters – Avoid complicated schemes claiming to eliminate your tax liability. These rarely work and often draw audits.
• Identity theft – Using a stolen Social Security number to file a false return is tax evasion and identity theft. IRS screens for SSN fraud.

Why People Try Dodging Taxes

No one enjoys paying taxes, but some take evasion too far. Common motivations Tallahassee attorneys report behind tax crimes include:

• Financial problems – From debt to bankruptcy, money issues push people to illegally reduce tax bills. But penalties outweigh any savings.
• Greed – Some inflate deductions through shady tax prep firms due to pure greed. These “too good to be true” promises often backfire.
• Protest – A small few dodge taxes as a political protest. But tax evasion is not protected free speech and brings prosecution.
• Ignorance – Many think they found a clever loophole to eliminate taxes, not realizing it’s illegal. Relying on bad tax advice is risky.
• Opportunity – Getting paid cash for work under the table provides opportunity for tax evasion. But IRS requires reporting all income.
• Compulsion – For a few, dodging taxes becomes an addiction. They keep doing it despite past audits and penalties.

Defenses Against Tax Evasion Charges

Once accused of tax evasion, the key is disproving intent. Without evidence you knowingly and willfully violated tax laws, there may be defenses to pursue. Common ways Tallahassee attorneys defend clients include:

• Lack of intent – If errors on a return were honest mistakes, it refutes intent to evade taxes. But the mistakes must be credible and reasonable.
• Reliance on professionals – As long as there was no collusion, relying on bad tax advice from CPAs or attorneys can indicate lack of intent.
• Evidence issues – If IRS audits or investigations were sloppy or biased, evidence against you may get thrown out. Skilled lawyers exploit this.
• Statute of limitations – Generally IRS has 6 years to charge you for tax evasion. If they missed this window, the charges can get dismissed.
• Constitutional rights – Violations of your rights, like illegal search and seizure, may make evidence inadmissible in court.
• Negotiation – While evasion must get reported, first offenses often bring penalties and back taxes owed rather than criminal prosecution.

Strategies to Avoid Tax Evasion Accusations

Honest mistakes can look suspicious to IRS. Here are proactive strategies Tallahassee attorneys recommend to avoid any appearance of tax evasion:

• File on time, every time – Even with an extension, late returns raise red flags. E-file by the deadline to avoid this.
• Report all income – Whether you get a 1099 form or not, IRS wants you to report all earnings. Omitting income is illegal.
• Keep detailed records – Document income, deductions, business expenses, etc. in case you get audited down the road.
• Review returns carefully – Don’t rush through your taxes. Double check for errors before e-filing to avoid problems.
• Ask questions – If confused during tax prep, speak up. Don’t let a shady preparer mislead you into shady deductions.
• Hire a CPA – Work with a reputable CPA or tax attorney, not a pop-up tax chain. They know the complex laws.
• Fix mistakes – If you discover an error later, file an amended return. IRS looks kindly on self-correction.

Get Legal Help Responding to Tax Evasion Allegations

Dealing with IRS can be intimidating. If you face tax evasion charges, meet with a local attorney as soon as possible. They can protect your rights, review your case for defenses, and deal with IRS on your behalf. Don’t go it alone against the IRS juggernaut. A skilled tax attorney can make all the difference.