Tax Evasion

A tax evasion conviction in Florida is accompanied by serious penalties that may include prison time. The state laws aim to minimize the growing number of fraudulent activities. As a result, the prosecutors have a significant legal arsenal.

If you were charged with tax evasion, you must seek professional legal assistance. At Piotrowski Law, we have several decades of experience in building successful tax evasion defenses. Our goal is to protect your rights and help you avoid life-changing consequences.

Understanding Tax Evasion and Federal Tax Crimes in Florida

Tax evasion is a willful attempt to evade paying taxes. The willfulness factor is important here. To be charged with evasion, the defendant must intentionally take illegal action to avoid the payment.

If the person fails to pay taxes for some time, they may be committing civil tax fraud. The consequences include paying unpaid taxes and penalties for not doing it on time. Meanwhile, if a person intentionally participates in the scheme to evade taxes, they face the IRS Criminal Investigation (CI).

The prosecutor would have to prove beyond a reasonable doubt that an evasion has occurred. If they do it successfully, the defendant may face prison time.

Common Federal Tax Charges for Professionals & Businesses

The variety of federal tax charges can be confusing at first. An experienced tax evasion attorney can help understand the nuances and build a relevant defense.

Payroll Tax Fraud & “Trust Fund” Violations

Business owners are responsible for withholding employee payroll taxes and sending them to the government. These funds are sometimes called “trust fund taxes” because the employer holds them on behalf of employees.

Many businesses run into trouble when they use withheld tax money to cover operating expenses. This practice is often called “pyramiding.”

Filing False Returns & Tax Fraud

Federal prosecutors may pursue charges when they believe a person intentionally filed false tax returns. This can involve:

• Underreporting income
• Hiding assets
• Inflating deductions

Tax authorities also pay close attention to offshore bank accounts and foreign financial assets. Failing to report these accounts or file the required FBAR forms can lead to criminal charges.

Failure to File a Tax Return

Missing a filing deadline does not automatically lead to criminal charges. However, willfully failing to file tax returns consistently may trigger a federal criminal investigation.

The Intersection of Tax Evasion and Other Financial Crimes

Tax evasion allegations are often connected to other financial crimes. For example, embezzlement investigations can lead to tax charges because illegally obtained funds may still qualify as taxable income.

If you are facing allegations involving the misuse of corporate funds, visit our White Collar Crime page for more on embezzlement defense.

Consequences of a Federal Conviction

A federal tax evasion conviction can lead to:

• Prison Time: Up to five years per count for felony tax evasion.
• Financial Penalties: Fines up to $250,000 for individuals and $500,000 for corporations.

In many cases, defendants also have to pay the costs of the government’s investigation and prosecution. This can add up to tens of thousands of dollars.

Strategic Defense for IRS Criminal Investigations

Early legal intervention is extremely important in tax evasion cases. Hiring a Miami tax evasion attorney before formal charges are filed may improve the chances of limiting the damage. Some of the common defenses include:

• Good faith: The attorney argues that the defendant made an error without planning to break the law.
• Professional tax preparers: If the defendant relied on professional tax preparation assistance, it may be possible to prove that the fault lies with a service provider.
• Proof of intent: The attorney can challenge the government’s ability to prove intent beyond a reasonable doubt.

An experienced tax evasion lawyer can use a combination of defenses to protect the client’s rights and avoid unfair penalties.

Frequently Asked Questions about Tax Evasion

What is the difference between tax avoidance and tax evasion?

Tax avoidance involves using legal methods to reduce tax liability. Tax evasion occurs when a person takes illegal actions to avoid paying taxes (e.g., hides income).

Can an IRS audit turn into a criminal case?

Yes. If auditors believe they see fraud occurring, they may refer the case to the IRS Criminal Investigation Division.

What should I do if an IRS Special Agent contacts me?

You should remain calm and direct the caller to your attorney. You have the right to say that you won’t answer any questions without legal representation.

Contact a Miami Tax Evasion Attorney Today

If you suspect you may be under investigation for tax evasion, you must consult an experienced attorney immediately. The earlier you receive legal guidance, the easier it will be to build a strong defense.

At Piotrowski Law, we are passionate about protecting the rights of Florida’s business community against the power of federal agencies. The extensive experience allows us to achieve positive results for our clients.

Don’t wait for a subpoena. If you suspect you are under investigation, contact Piotrowski Law for a confidential consultation.