If you earn a living, the Internal Revenue Service (IRS) expects you to file a federal tax return and pay what you rightfully owe annually. If you willfully avoid paying a legitimate tax bill, a prosecutor may investigate and charge you with tax evasion, a felony with harsh punishments.
Tax evasion is a subset of tax fraud, which can be a misdemeanor or felony and has a wider reach than the specifics of evasion. To successfully convict you for evasion, prosecutors must satisfy a strict burden of proof and establish that you committed each element of the federal crime. IRS tax evasion investigations in Richmond can be stressful and complicated. If you believe you are under investigation, a tax evasion attorney could help.
Federal tax evasion is codified under 26 United States Code § 7201, which stresses that the taxpayer knows and willfully acts to evade a tax assessment or payment, and the assessed amount is correct and still owed. Prosecutors must prove guilt beyond a reasonable doubt, which means when they present all the evidence, they convince the jury that only you could have perpetrated the crime.
Other tax fraud prosecutions are subject to a lower burden of proof, requiring a preponderance of the evidence and leaving juries to find you guilty even if some doubt exists. Both individual taxpayers and businesses can evade tax debt by:
The IRS uses several tactics to first identify you as a tax evasion suspect and then conduct an inquiry in Richmond. Our attorney—the only criminal tax attorney in the area—can negotiate with those pursuing you.
The IRS Criminal Investigation Division (CID) conducts criminal investigations of alleged tax violations that usually begin when an agent audits your tax return and suspects fraud, opening a preliminary investigation to determine if there is enough evidence to prosecute you.
Once the CID opens the investigation, a special agent could visit your home or business and ask to review documentation, including your bank and business records. They may interview others who have knowledge of your finances, such as your investment counselor or banker, and compel them to produce records. You may be put under surveillance or subject to a search warrant. If the CID believes there is enough evidence for prosecution, they will refer your case to the Department of Justice.
The earlier you contact an experienced attorney if the IRS is investigating you for tax fraud in Richmond, the more likely they could rectify the problem, so it is worth being proactive in this regard.
A conviction for tax evasion is punishable by a prison sentence of up to five years, or a fine of $250,000 for an individual or $500,000 for a corporation, and possibly both. You do not need to face these significant potential consequences alone.
IRS tax evasion investigations in Richmond are stressful and can include your family, friends, and business associates. As soon as you are aware that you are under investigation, contact us to schedule an appointment with our knowledgeable and experienced lawyer.