What is Tax Evasion?
In Missouri and throughout the U.S., tax evasion is a serious federal crime that comes with significant criminal penalties. Tax evasion occurs when an individual, business or other entity deliberately attempts to defraud the IRS by using illegal means to conceal or misrepresent financial details in order to avoid paying taxes.
Dishonest tax reporting such as declaring less income, profits, or gains than what you actually earned or overstating deductions can land you in prison for up to 5 years and/or fined $100,000 ($500,000 for a corporation). Not too mention, you’ll be left with the lifelong stigma of being convicted for a felony.
If you think you may be a target of an investigation by the IRS for tax evasion or have already been criminally charged, it is essential to hire an experienced tax attorney as soon as possible. Your financial well-being, reputation, and personal freedom may all very well depend on it.
At Krus Tax Law, we provide skillful representation to St. Louis-area clients who are facing allegations of tax evasion. Founder and lead tax attorney has over a decade of experience both prosecuting and defending criminal tax cases, including tax evasion. His clients include multi-state individuals, resident aliens, non-resident aliens, C-corporations, S-corporations, partnerships, and trusts.
Common Examples of Evasion
The following actions constitute tax evasion and may lead to criminal prosecution
- failure to pay taxes;
- failure to file tax return;
- filing falsified documents;
- failing to report income;
- concealment of assets;
- underreporting taxable income;
- claimed excess deductions
- using offshore entities, shell accounts, or trusts to hide income
- lying to IRS agents during an audit investigation
Evasion can also be charged in connection with other illegal activities such as money laundering and drug offenses.
Tax Evasion Penalties in Missouri
A tax evasion charge from the IRS can result in two separate lawsuits. The first takes place in criminal court in which you will face potential conviction for federal fraud that could result in up to five years in prison and up to $100,000 in fines for individuals and $500,000 fines for corporations.
The second takes place in civil court where the IRS can sue you for civil tax fraud. A civil tax fraud penalty is equal to 75% of the tax owed, plus interest on the penalty.