![]() It would be wrong to expect leniency from the prosecution in such criminal cases. The law takes a stern view of those convicted as they make a conscious attempt to evade their tax liabilities. You may also be required to pay significant fines for tax evasion.Ĭriminal tax evasion is no joke. Prison may not be the whole punishment either. The federal sentencing guidelines provide a baseline of how many years in prison for tax evasion crimes you will have to serve. The aforementioned reasons should shed some light on why a prison sentence may be given to you if you’re convicted of tax evasion. Tax evasion sentencing guidelines: who goes to jail for tax evasion? Having good tax audit representation works in your favor as experienced tax audit attorneys can help the IRS reach that conclusion in your case, thus saving you from a long and arduous trial. Most taxpayers will only be hit by IRS audit penalties if the evidence shows they didn't break the law intentionally. The minimums laid down in the sentencing guidelines also dictate for how long a person convicted of tax fraud has to be locked up. Hiding records or making false statements on purpose during an audit is also a clear indication to IRS auditors that the case warrants criminal prosecution.Īs far as the tax evasion jail time is concerned, that depends on a variety of factors, such as the amount of money involved and whether the defendant is a repeat offender. Perhaps they make a habit of leaving out sizable transactions or even entire sources of income to lower their tax liabilities on purpose. Most taxpayers that face criminal prosecution do so because of unreported income. The IRS looks for trends in the return that indicate a pattern of willful evasion over several years and the error amounts tend to be significant. For some, it starts with the audit of a filed tax return. The entire process does take time as the case would go through the court system but that's the ultimate reality. You can ask yourself “Why do I have to pay Uncle Sam my hard-earned cash?” Or, “ why do I owe state taxes?“ until the cows come home, but if you purposely don’t pay them, you can end up behind bars.Ī series of events happen before the IRS sets up a case for criminal prosecution. If you’re convicted, you can absolutely go to jail for tax evasion. The consequences of tax fraud include fines and jail time. Tax fraud jail time: can you go to jail for tax evasion? It must also be able to prove that additional tax is due and owed by the accused. Note the repeated use of the word "willful." To secure a conviction under this section, the prosecution must prove beyond reasonable doubt that the accused performed an affirmative act with the intention to evade or defeat the assessment or payment of a tax. Here, the person would have willfully attempted to evade the payment of a tax liability that has become due. The willful attempt to evade or defeat the payment of a tax is also a federal tax crime. For example, if someone holds assets in another person's name or transfers assets to another person so that the Internal Revenue Service is unable to determine their actual tax liability, this would be considered willful evasion. The following section details the two potential offenses that when committed, would constitute a federal tax crime.įirst, a willful attempt to evade or defeat the assessment of a tax constitutes a federal tax crime. Tax evasion is considered a federal crime as dictated by Section 7201 of the US Internal Revenue Code. The justice system doesn’t take too kindly to those convicted of tax crimes so expect the harshest penalties possible under the law. There’s also the fact that felony convictions stay on your criminal record and that may significantly limit your ability to seek employment or even run your own business in the future. In an ideal world, you never want to be in a position where you are searching the internet for the answer to the question is tax fraud a federal crime? Federal tax crimes are no joke and if convicted, you could be looking at significant repercussions. The penalties vary based on the nature of the offense but the law clearly states the maximum fines and jail terms. That may seem harsh, but the IRS doesn’t shy away from seeking custody for those who have demonstrated a pattern of intentionally breaking tax law. In addition to financial penalties, the tax fraud jail time handed down to you will strip you of your liberty for several years. The law provides for significant tax evasion penalties to deter you from activities that could end up with you being convicted of evasion or fraud.
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