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Statewide Representation Throughout Alabama (205) 871-8838
Free Professional Consultations 24 hours a Day(205) 222-4544

Dealing with a tax problem is never easy, but it is a virtual guarantee that the longer the delay in addressing the issue, the worse the problem becomes. Fortunately, there are often many options when it comes to settling tax issues, and sometimes an outstanding tax problem can be settled with less cost than expected—or a criminal charge such as tax evasion can be avoided.

Because tax crimes involve complicated federal law but are nonetheless handled in local courts, it may be wise to get advice from a Shelby County tax evasion lawyer who understands the most effective defensive strategies and could help you work toward the best possible resolution of your case. If you are facing tax evasion charges, seek the services of a professional attorney today to get started on your case.

Two Types of Tax Evasion

Both the Federal Internal Revenue Service (IRS) and the Alabama Department of Revenue recognize and differentiate between two types of tax evasion. A taxpayer may be found in violation of the law for either attempting to evade assessment of taxes or for trying to avoid paying taxes.

Examples of an evasion of assessment would be a situation where an individual deliberately reports receiving less income than actually received, or transfers assets in such a way that the full extent of their tax liability is not apparent. An instance of evasion of payment might involve moving or concealing funds which could be used to pay outstanding taxes.

In either case, the taxpayer must take an affirmative action to evade assessment or payment in order to be criminally liable. An accidental underpayment would not constitute criminal tax evasion. For more information about tax evasion, call an accomplished attorney.

Common Instances of Tax Evasion

Although federal and state laws require an affirmative, intentional action in order to find a taxpayer has committed tax evasion, that action may be comparatively minor. Some actions that may constitute tax evasion include:

  • Exaggerating deductions
  • Keeping property in the name of another person
  • Destroying records
  • Filing a false tax return
  • Hiding sources of income
  • Keeping two sets of bookkeeping records
  • Creating false invoices

Potential Penalties

A taxpayer may face prosecution for tax evasion by either the U.S. government or the state of Alabama. While the state statute is patterned after the federal version, taxes are assessed in a different way at the state level, and the rules of evidence and criminal procedure are different as well.

Those convicted of tax evasion at either the state or federal level may be sentenced to up to five years in prison. In addition, the federal government may issue a fine of up to $250,000, or the state may assess a fine of up to $100,000. The amount increases to $500,000 for corporations at either state or federal level.

Other tax crimes that may be charged with slightly reduced penalties include failure to file a return, filing a fraudulent return, misrepresenting financial information, or failing to pay taxes. A tax evasion attorney in Shelby County has the experience to help someone accused of tax fraud avoid these penalties or mitigate the charges.

Seek the Services of an Attorney

If you are being investigated for tax evasion, are facing criminal tax charges, or need to appeal a tax crime conviction, you may need to talk to an experienced Shelby County tax evasion lawyer as soon as possible. You have certain legal rights that should be protected, including the right to consult an attorney before making statements to the IRS.

Those who investigate and prosecute tax crimes tend to be extremely well-versed in this area of law, and you deserve to have equal experience working to protect your rights. Call today to learn how a dedicated local lawyer could help you move toward a positive outcome in your case.