Criminal charges involving financial crimes can result in serious penalties for Mississippi adults if convicted. Tax evasion is one of the most common white collar crimes, and while these cases lack an element of violence, they can still result in penalties that may include decades behind bars. If you are facing allegations of this type of white collar crime or another financial crime, it is in your interests to begin building your defense strategy as soon as possible.
With the right defense, it may be possible to effectively confront these charges. In order to discover the most effective approach to fighting back against the prosecution’s case, you may benefit from understanding more about what counts as tax evasion and how the federal government prosecutes these cases. There is no one-size-fits-all defense strategy, which is why it is important to craft your approach according to the individual details of your case.
Two types of tax evasion
Tax evasion includes acts committed in order to avoid paying taxes or underpaying the amount owed to the government. According to the Internal Revenue Service, there are two main types of tax evasion, evasion of payment and evasion of assessment. The differences between the two are as follows:
- Evasion of assessment – Evasion of assessment happens when the tax payer does something to defeat the assessment of taxes owed. There must be proof of negligence to pay the required amount and an obvious attempt to evade payment.
- Evasion of payment – Evasion of payment includes the concealment of money or assets in order to reduce the amount of taxes owed. This may involve hiding assets in foreign accounts or giving assets to a family member to hold.
The IRS considers actions such as filing false returns, keeping two sets of financial records, concealing income sources and overstating the number of deductions to be forms of tax evasion. The IRS may conduct an audit which could result in fines, additional penalties and even criminal prosecution.
Your future is on the line
If facing allegations of tax evasion, you would be wise to take your situation seriously. Your future freedom, personal reputation and long-term opportunities are at stake, and now is the time to focus on your defense. A careful assessment of your case and the prosecution’s evidence will reveal if you experienced a violation of your rights or if there are weaknesses in the case against you, determining the direction of your defense strategy.