If you're facing charges for failure to file taxes, you may wonder: Can you really go to jail for this? For many individuals, a charge of failure to file taxes begins with an audit by the IRS and/or a knock at the door by IRS agents. If the IRS finds there is probable cause to believe a person committed a tax crime, the case will be referred to the Department of Justice Tax Division for prosecution. The law imposes significant penalties for failing to file taxes, including heavy fines and even potential prison time. It is important to understand what constitutes a tax crime and how the process works when a person is charged with tax fraud or tax evasion.
If you are under investigation by the IRS or have been charged with a federal tax crime, seeking experienced legal representation is crucial. Federal white-collar criminal defense attorney Hope Lefeber has represented people charged with tax fraud, tax evasion, and other tax crimes for more than 30 years. She understands federal tax law and uses her significant experience to obtain favorable outcomes on behalf of her clients.
To put her experience to work for you, contact the Law Offices of Hope Lefeber today.
In the United States, failure to file taxes is illegal, in violation of 26 U.S.Code Section 7203, which proscribes willful failure to file a return, supply information, or pay tax. While most people will be charged civilly for tax evasion, the willful failure to file or pay taxes to the government is a federal criminal offense. You could face significant legal consequences if you fail to file your federal income taxes. These penalties can range from interest on the unpaid taxes to criminal charges, fines, and jail time.
This statute applies to both individuals and businesses. It covers all types of taxes, including income tax, payroll tax, and excise tax.
While Section 7203 technically also applies to failure to pay estimated taxes, most instances of underpayment of estimated taxes are not prosecuted under this law. Still, they are typically assessed additional fees per IRC 6654 or IRC 6655.
If the failure to file or pay taxes involves a violation regarding large cash payments (26 U.S.C. 6050i), the crime is escalated from a misdemeanor to a felony with a maximum of 5 years' imprisonment.
Tax evasion and tax fraud both involve the willful attempt to avoid paying taxes.
Under Section 7203, any person required to pay any tax or required by law or regulations to make a return or statement and willfully fails to do so or neglects to pay such tax is guilty of a misdemeanor.
For purposes of this law, a "person" refers not just to an individual taxpayer but also to any "officer or employee of a corporation, or a member or employee of a partnership" responsible for filing/paying the taxes of that entity.
To convict a person or entity of this crime, the government must prove beyond a reasonable doubt that:
The following federal statutes constitute the majority of federal criminal tax violations :
Violating Section 7203 is a misdemeanor offense. If you are convicted of this crime, you may face a fine of up to $25,000 or $100,000, imprisonment for up to one year, or both, in addition to the costs of prosecution. However, where the amount of tax loss is significant and there are multiple counts of conviction, the total term of imprisonment imposed can exceed one year and can be significant. The penalty can increase substantially if taxes went unpaid over many years. In some cases, federal prosecutors seek to include unpaid taxes for years that are beyond the statute of limitations, leading to potentially severe and draconian sentences.
Sentences in federal tax crime cases are calculated according to the Federal Sentencing Guidelines. The sentence is determined using a framework that considers the seriousness of the offense and the defendant’s criminal history. In federal tax crime cases, the amount of loss to the government is one of the primary factors that influences the severity of the sentence.
If you believe you are under investigation or have been charged with failure to file taxes, securing experienced legal counsel can help you avoid the most severe penalties. An attorney can analyze the charges against you, develop a comprehensive defense strategy, and help you avoid the most severe punishments.
Hope Lefeber has represented people charged with federal tax crimes for over 30 years. She began her career as an enforcement attorney with the Security and Exchange Commission, where she learned first-hand how the government investigates, prepares, and prosecutes federal white-collar crimes. Today, she uses that experience to defend people charged with tax crimes and help them achieve the best results. She is routinely called upon by tax preparers, accountants, CPAs, businessmen and women, and others who are under investigation or facing criminal charges for tax fraud, tax evasion, and other white-collar crimes.
Ms. Lefeber frequently works with a team of expert forensic accountants and investigators to analyze and deconstruct criminal tax cases to achieve optimal outcomes. She will carefully examine your financial situation to identify the most effective defense strategy with the singular goal of reducing or eliminating the potential criminal penalties.
To put the expertise of an experienced federal criminal tax crime defense lawyer to work for you, contact the Law Offices of Hope Lefeber today.
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