Tax evasion

Criminal Defense

Criminal tax cases require willfulness, and willfulness has to be proved.

The government must show a voluntary, intentional violation of a known legal duty. Mistakes, bad advice, disorganised records, cash-basis chaos in a small business and disputes over how income should be characterised are not crimes. That distinction is the centre of the defence, and it is why the timeline of what you knew, what your accountant was told and what you were advised matters so much.

How a civil audit turns criminal

A revenue agent who develops indications of fraud is expected to refer the matter, and the examination may go quiet without explanation. That silence is a warning sign. So is contact from IRS Criminal Investigation, a summons to third parties such as your bank, or agents appearing at a home rather than an office. Continuing to hand documents over informally at that stage is how people build the government's case for it.

Allegations that come up

• Evasion of assessment or payment, and filing false returns.
• Failure to file returns over multiple years.
• Unreported cash receipts and offshore or undisclosed accounts.
• Employment tax offences — withheld payroll taxes not remitted, which the government treats seriously because the money was never the employer's.
• False deductions, inflated expenses and personal spending run through a business.
• State tax matters, including sales tax collected and not remitted.

Voluntary correction, before it is too late

Coming forward is only meaningful while the government does not already know. Where the facts support it, correcting past filings through the proper channel, with counsel, can resolve a matter civilly that would otherwise be prosecuted. Doing it badly — filing amended returns that amount to a written confession — makes things worse. This is a decision to make with a lawyer, not with a preparer.

Fees, and what you get for them

Criminal matters are quoted as a flat fee for a defined stage of the case, so you know what representation costs before you commit to it. Payment plans are available. What the fee buys is a lawyer who appears at your settings, reads the file rather than skimming it, and tells you honestly which parts of the State's case are weak and which are not.

Common questions