New York Tax Evasion Attorney for Federal IRS Charges

If your tax account gets referred to the IRS Criminal Investigation (CI) Unit, then you’re in a precarious position. Statistics from 2023 showed that the IRS’s CI team investigated around 2,676 cases and obtained an astonishing 88.4% conviction rate for cases referred to prosecutors.

Tax evasion is the willful attempt to avoid paying taxes, and it’s a criminal offense that could lead to fines and prison time. You need immediate legal protection once you’re facing prosecution – an experienced tax evasion attorney is critical.

Hiring a New York tax evasion attorney can help you navigate potential legal charges while also maintaining your best interests and upholding your rights. Learn everything you need to know about facing IRS tax crime charges and how our team here at the Timothy S. Hart Law Group P.C. can help.

Key Takeaways

• Tax evasion is a criminal offense punishable by up to five years in prison and fines of up to $100,000 for individuals.
• Early intervention is the best strategy for handling tax evasion charges or potential tax evasion charges.
• Considering the severity of a tax evasion conviction, it makes the most sense to work alongside a qualified tax resolution attorney to minimize the penalties you might face.

Why You Need a New York Tax Evasion Defense Attorney

Under Title 26 USC § 7201, criminal tax evasion is defined as when a citizen willfully attempts to defeat or evade taxes imposed by the federal government.

Can you go to jail over your tax situation? Yes, if you get convicted of tax evasion under this statute, then you might get sentenced to spend up to five years in prison. You might also be subject to fines of up to $100,000. Corporations that are found guilty can be fined up to $500,000.

Tax evasion is a felony offense. If convicted of a felony, you may lose specific rights such as the right to vote, possess firearms, and hold public office.

With so much on the line, you need a quality New York tax evasion defense attorney to advocate for you. A skilled tax resolution expert could be the difference between facing years behind bars and having your case dropped.

What Counts as Tax Evasion?

Tax evasion is when you willfully attempt to evade taxes. People are generally charged after exhibiting a pattern of repeated non-compliance with the IRS. Some of the most common types of behaviors that could potentially trigger tax evasion claims include:

• Years of unfiled returns
• Filing false returns
• Intentionally underreporting income on your returns.
• Omitting offshore income, cash, or cryptocurrency gains on your returns
• Owing back taxes and intentionally ignoring IRS attempts to contact you or collect from you
• Structuring transactions to purposely avoid reporting thresholds
• Improperly using deductions or credits to reduce your actual tax liability
• Business owners who intentionally evade paying payroll taxes

It’s important to keep in mind that one mistake or an accidental violation isn’t going to result in tax evasion charges. You’ll only get referred to criminal court when your violations and non-compliance are clearly willful and intentional.

In a lot of cases, the IRS cannot definitely prove tax evasion, and they may pursue tax fraud charges. Tax evasion is a specific type of tax fraud that involves an attempt to evade taxes. Tax fraud, in contrast, is an umbrella term that refers to situations where you provide the IRS with fraudulent information, such as falsifying a return or another IRS document.

IRS Criminal Investigation in New York: What to Expect

When the IRS CI unit receives your case, an agent will review everything the tax agency has already documented about your case. Then, they’ll begin a thorough investigation process. This process will involve interviewing witnesses, collecting as much financial documentation as possible, conducting surveillance, reviewing any tips the agency has received, and examining the evidence forensically.

During this stage, you might face a search warrant, be informed about potential grand jury proceedings, have an agent contact you, or receive a summons. Getting legal representation immediately is the best option if your case has escalated to this level.

How We Defend You Against Tax Evasion Charges

Our firm has extensive experience defending clients from tax evasion charges. Our number one defense strategy is preventing a criminal referral or formal charges from coming to pass. For this strategy to be effective, early intervention is key. Typically, the sooner you get in touch with our tax evasion team, the better your odds are at securing a more favorable legal outcome.

Our next strategy will be to challenge the government’s proof of willfulness. We’ll cast doubt on the IRS’s claims that your violations were intentional. We will seek to break down the argument that your evasion was a pattern. We’ll do this by using our forensic accounting skills to prove your errors were mistakes, not willful violations.

As a more dire resort, we’ll negotiate with prosecutors to secure an agreement that minimizes your consequences. If possible, we’ll attempt to pursue civil resolutions rather than criminal charges. While tax evasion is always criminal, tax fraud can be civil. If the IRS decides that you have committed civil but not criminal tax fraud, you will incur penalties but no legal charges.

If none of those strategies work, then we won’t back down from taking your case to trial. Our firm is backed by decades of tax law experience, so we know we can advocate for you to the fullest.

Why Choose the Timothy S. Hart Law Group

Our legal team has deep experience handling both civil and criminal tax matters. Our track record speaks for itself. In one recent case, we resolved a situation for a client whose retirement checks were getting levied due to unfiled tax returns spanning over six years. Our lawyers helped prove to the IRS that our client couldn’t afford payments since he needed his income for his living expenses. The IRS ultimately released the levy, stopped collection efforts, and established an affordable payment plan for our client.

We also have a local advantage in the New York area federal jurisdiction. Our team is made up of attorneys, CPAs, and former IRS personnel. Best of all, we offer judgment-free, confidential, and customized defense strategies for every client. We’ll treat you like an individual, not just another tax case.

Frequently Asked Questions: Tax Evasion Charges

Do you have more questions about tax evasion, IRS investigative procedures, or potential tax resolution strategies? Consulting with a tax attorney is typically your best option since they can provide personalized legal counsel based on the specific facts surrounding your tax case, but we’ll provide a general overview of a few basic questions about tax evasion below.

What’s the difference between tax fraud and tax evasion?

Tax evasion is a type of tax fraud. It’s always criminal. Tax fraud is an umbrella term that may include criminal tax fraud or civil tax fraud.

Can I go to jail for not filing taxes in New York?

It is possible to go to jail for not filing your taxes in New York, but only if you continue to ignore your tax situation until the IRS recommends your case for criminal investigation and prosecution. The IRS only takes this type of drastic action in extreme circumstances when they have good reason to believe that you’re being willingly non-compliant.

The IRS will try to give you plenty of opportunities to resolve your situation before escalating it to this level.

How do I know if I’m being investigated for tax evasion?

Some of the top signs to watch for if you think you might be under investigation for tax evasion include contact from an agent, receiving a summons, getting a subpoena, being served with a search warrant, or getting a letter explaining you’re at risk for indictment.

Prior to these very serious signs, you should notice several communication attempts from the IRS. Fast legal intervention can help you prevent your case from escalating, regardless of what stage of the process you’re currently experiencing.

Will the IRS settle tax evasion cases out of court?

No, once the IRS refers your case for criminal prosecution, it’s in the hands of criminal prosecutors. You can still resolve your back tax problems with the IRS, which will be a sign of good faith and could influence your criminal case, but it won’t “resolve” or “settle” your criminal case. Settling your past tax debt problems could help you potentially get your charges dropped, but it’s not a guarantee.

Should I talk to the IRS if I think I made a mistake?

It depends on your unique circumstances, and you should definitely refer to a lawyer before making that decision. Speaking to the IRS if you think you made a mistake might be a good idea if they haven’t referred your tax for criminal prosecution yet.

Voluntary disclosure is one process that could help you reduce or prevent criminal prosecution, but you don’t want to get started on this without consulting with an attorney first.

Schedule a Confidential Consultation

If you’ve been contacted by an IRS agent, then don’t wait to get started on resolving your situation. Typically, the longer you wait, the more serious your situation will become.

Are you ready to get started on resolving your tax problems and clearing your name?

Contact our team here at Timothy S. Hart Law Group, P.C., to schedule a confidential case evaluation by leaving your phone number and name on our online form. You can also reach out to us directly over the phone. We’re prepared to aggressively advocate for you. We’ve defended countless clients from criminal tax charges. Let us fight for you.