Tax Evasion or Fraud: When to Hire a Seattle Criminal Tax Attorney

When most people struggle with their taxes, they worry about dealing with financial headaches, such as an audit, finding a way to deal with unpaid taxes, or figuring out how to handle a tax lien or levy. But in some cases, the tax problems are more severe such that a taxpayer has to worry about not just financial issues, but also criminal charges that could lead to jail time.

If you’re accused of intentionally misrepresenting information on your federal or Washington State taxes, you might be facing the possibility of criminal tax evasion or fraud charges. If so, you’ll want to hire a criminal tax fraud attorney. Let’s take a look at how a criminal tax attorney can help if you’ve been accused of tax evasion or fraud. Or contact us now to learn more.

Tax Fraud Versus Tax Evasion 

Before discussing the benefits of hiring a tax evasion lawyer, it’s important to understand the difference between tax fraud and tax evasion. Both of these terms are similar, although there can be some major differences between the two.

Generally speaking, tax evasion occurs when a taxpayer intentionally lies or misrepresents information so they can avoid paying a tax or so they can receive a tax benefit (like a tax credit or deduction) that they’re not otherwise entitled to receive. By definition, tax evasion is always a criminal act and not a civil offense.

Tax fraud is similar to tax evasion in that it too requires a taxpayer to act intentionally to avoid paying a tax or receive a tax benefit they shouldn’t. However, tax fraud is a broader term that can include both civil and criminal tax violations. A classic example of tax fraud is lying on your tax return by deliberately failing to disclose income. Depending on the facts of the case, this could result in tax fraud and/or tax evasion charges. 

Examples of potential criminal tax fraud or evasion include:

• Falsifying documents used to support your false claims about the nature of your finances.
• Using illegal tax shelters.
• Stealing someone else’s identity to steal their tax refund check or other tax benefits.
• Unlawfully moving money or other assets to hide otherwise taxable income.

Because of its broader nature, there are two types of tax fraud. These include civil tax fraud and criminal tax fraud. For all intents and purposes, criminal tax fraud is the same thing as tax evasion. Put another way, “criminal tax evasion” is a redundant term and “civil tax evasion” doesn’t exist.

The primary difference between civil tax fraud and tax evasion lies in how they’re prosecuted. Civil tax fraud is a civil offense, which means the government only needs to provide evidence that meets the “clear and convincing” burden of proof. And if a taxpayer is found liable for civil tax fraud, the potential punishments are only monetary.

In contrast, tax evasion is a criminal offense. This requires the government to meet the higher “beyond a reasonable doubt” burden of proof standard. If found guilty of tax evasion, a taxpayer faces the potential for not just monetary fines, but also jail or prison time.

Another difference between tax evasion and fraud is the amount of time the government has to bring a case. As a general rule, the government must bring criminal charges for tax evasion within six years of the unlawful act. However, there’s no statute of limitations for civil tax fraud. 

Why Legal Representation Is Important in Criminal Tax Cases 

Hiring an attorney to help handle a criminal tax matter is important because the penalties are far greater. For example, IRS civil tax penalties are usually capped at 75% of the unpaid tax balance and do not include the possibility of prison or jail time.

But criminal tax penalties are more severe, with monetary fines that can be up to hundreds of thousands of dollars plus multiple years in jail. There’s a big difference between worrying about the IRS garnishing your wages or taking money from your bank account as opposed to law enforcement showing up at your home or place of business and taking you away in handcuffs in front of your family or coworkers. 

How Seattle Legal Services Can Help 

Comprehensive Case Examination 

Whether you’re facing criminal charges that could result in decades in jail and millions of dollars in fines or an IRS tax debt collection action, Seattle Legal Service will take the same approach to learn as much about your situation as possible. This includes a comprehensive examination of your case, including a review of documents and talking to you and anyone else with knowledge about your case.

We begin this process with a free initial consultation. This is an opportunity for us to gain an understanding of your situation and what you’re potentially dealing with. We can confirm if we can help you with your case and what that would entail. We’ll also go over your legal options and what might be the best course of action for you.

This can be a very stressful and unsettling time for you. Most likely, we can’t fix everything for you during this initial consultation, but this meeting can hopefully give you a better idea of what to expect moving forward. 

Customized Legal Strategy 

Your case is unique, so it requires a tailored approach to defend against the charges made against you. We have experience handling various criminal tax matters and we can leverage that experience into using the facts of your case to customize your legal defense. However, we don’t just help with criminal issues—our tax attorneys can help you find solutions to a broad range of tax troubles.

Aggressive Legal Defense 

We know there’s a lot at stake here. It’s not just money, but also your freedom and missing out on priceless experiences. This is particularly true if you have a family and are a parent. Because of what’s on the line, we will aggressively, yet tactfully, assert all available legal defenses on your behalf. At the same time, we know that fighting and going to trial may not always be in your best interest, as sometimes a settlement might provide the best outcome with the least amount of risk.

Tax Evasion Defense FAQs 

What should I do if I think I’m being accused of tax evasion or tax fraud? 

Stop talking to the IRS and Washington State Department of Revenue (DOR), then contact an attorney. What you say and do could potentially be the reason criminal charges are brought against you. Then at trial, that same information might serve as evidence to obtain a conviction. 

What kind of penalties could I face if found guilty of criminal tax fraud or evasion? 

It depends on the specific statute you’re being charged with. However, monetary fines can range from a few thousand dollars to up to $250,000 for individuals and $500,000 for corporations. There’s also the possibility of up to five years in prison for each charge. 

How do I defend myself against criminal tax fraud charges? 

You can theoretically do it by yourself, but you’ll be at a significant disadvantage. State and federal prosecutors rarely charge taxpayers for tax evasion unless they believe they have a strong case. Trying to learn how the criminal process works while also trying to litigate a criminal matter is extremely difficult. All the while, your freedom and professional livelihood are on the line. Therefore, to best defend yourself against tax evasion charges, you’ll want to hire an attorney with experience handling criminal tax matters. 

Could tax fraud lead to prison time? 

Maybe. Remember that tax fraud can encompass either civil tax fraud or criminal tax fraud (tax evasion). The former won’t lead to prison time, but the latter could. 

Why You Should Hire a Seattle Tax Fraud Lawyer 

If you’re facing the prospect of criminal tax fraud charges, Seattle Legal Services can help. We have years of experience dealing with tax disputes among individuals, businesses, the IRS, and the Washington State Department of Revenue. In some cases, we can help you avoid criminal charges from being brought in the first place. But we can only do that if you contact us sooner rather than later. The moment you think you might be facing criminal penalties involving your taxes, contact Seattle Legal Services, PLLC. We’re more than happy to set up a free consultation if you call us at 425-428-5262 or use our online contact form.