Lynette Byrd
Attorney Lynette ByrdTax Fraud and Evasion Team LeadFormer DOJ Attorney
Attorney Alina VenezianoTax Fraud and Evasion & CPATeam Lead
Chris QuickTax Fraud and EvasionTeam ConsultantFormer FBI & IRS-CI Special Agent
Alice CampbellTax Fraud and EvasionTeam ConsultantFormer IRS Special Agent
Are you grappling with tax reporting complexities? Have you received notification of an IRS investigation? Did Internal Revenue Service (IRS) agents visit your home or business? Have you been served with a Grand Jury subpoena? Are you concerned about yourself or loved ones facing federal theft offenses or tax fraud accusations? If these questions resonate, it’s crucial to understand when to seek a Tax Evasion Lawyer.
IRS legal notice of seized property, indicating potential tax fraud investigation.
The U.S. government is intensifying its focus on federal white-collar crime investigations, particularly those concerning federal tax fraud. Daily, new arrests and tax fraud allegations emerge. Given the severe penalties, including substantial criminal fines and imprisonment, prompt and informed legal counsel from a seasoned federal tax evasion lawyer is paramount to mitigate worst-case scenarios.
Oberheiden, P.C. comprises former U.S. prosecutors and highly skilled federal defense attorneys. Our tax evasion lawyers are adept at navigating interactions with the IRS, IRS Criminal Investigation Unit (IRS CI), and the U.S. Department of Justice (DOJ). Many of our attorneys are former DOJ prosecutors with direct experience collaborating with federal law enforcement agencies like the IRS. This background is invaluable in formulating effective strategies to safeguard our clients. Our criminal tax attorneys have a proven track record of successfully resolving numerous federal investigations without criminal charges. Contact Oberheiden P.C. today for a confidential, no-cost consultation with a knowledgeable tax evasion lawyer.
Are You at Risk of Tax Evasion Charges?
Underpaying taxes owed to the IRS constitutes tax evasion, a federal offense carrying both civil and criminal repercussions. If you are under scrutiny or facing charges for tax evasion under 26 U.S.C. Section 7201, securing an experienced federal tax evasion defense lawyer without delay is critical.
All U.S. citizens and residents are mandated to fulfill tax reporting obligations to the IRS. This includes accurately calculating federal income tax liability and ensuring timely tax payments. U.S. businesses face similar requirements, encompassing reporting and remitting taxes such as payroll taxes (e.g., Social Security tax) and all other applicable taxes as per the Internal Revenue Code. Failure to meet federal tax obligations is a violation. While most instances are civil matters addressed through IRS audits of individual and corporate taxpayers, allegations of intentional underpayment or nonpayment are classified as tax fraud, potentially leading to a criminal tax investigation and subsequent criminal charges. The penalties for tax evasion are substantial.
Why Thousands Trust Oberheiden P.C. with Tax Evasion Defense:
- Senior Attorney Focus: We exclusively employ Senior Attorneys, not paralegals or junior staff. You will collaborate directly with a Senior Attorney who will provide regular, detailed updates on your case.
- Government Insight: Many of our attorneys are former federal prosecutors. This insider perspective into government tactics and strategies offers a significant advantage in building your defense against tax evasion charges.
- Investigative Expertise: Our team includes former FBI, IRS, DEA, OIG, and Secret Service agents. Their expertise in espionage, business investigations, and cyber forensics uncovers crucial details that can be pivotal in achieving a favorable outcome in your tax evasion case.
- Proven Success: Our extensive experience in challenging the government has resulted in over 2,000 successful case resolutions for our clients.
We encourage you to compare our experience, team, and results with any local or national firm when considering your defense against tax evasion. Our extensive history in this field means we have encountered and countered virtually every tactic and strategy in tax evasion cases.
If your reputation, career, freedom, or livelihood is at stake due to tax evasion allegations, contact us today for a free consultation. We will provide clarity on your options and the optimal path forward.
Call now to discuss your case confidentially: 888-680-1745
Dr. Nick Oberheiden
Severe Penalties for Federal Tax Evasion
Tax evasion penalties apply to both individuals and corporations. Criminal penalties include significant fines, lengthy federal prison sentences, and responsibility for government prosecution costs. Civil penalties in tax evasion cases involve financial penalties and covering government prosecution expenses.
- Tax Evasion: Criminal tax evasion can result in up to five years imprisonment, fines up to $100,000 for individuals ($500,000 for corporations), and covering prosecution costs.
- False Statements on Income Tax Returns: Making false statements can lead to a three-year prison sentence, fines up to $100,000 for individuals ($500,000 for corporations), and prosecution cost reimbursement.
- Aiding or Assisting in False Tax Document Preparation: Assisting in preparing false tax documents can result in a three-year prison term, fines up to $100,000 for individuals ($500,000 for corporations), and covering prosecution costs.
- Conspiracy: Conspiracy to commit federal tax crimes, a felony, carries penalties of up to five years imprisonment and/or criminal fines, potentially with added penalties for the underlying tax crime.
IRS Investigation for Tax Evasion: What to Expect
Criminal tax evasion investigations are conducted by IRS CI. Their mission within federal law enforcement is to “serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.”
While IRS CI investigates various criminal offenses under tax law, tax evasion under 26 U.S.C. Section 7201 is a primary focus:
“Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”
“Evade or defeat” tax essentially means underpaying or avoiding tax payments. If you’re under a tax evasion investigation, your tax evasion lawyer will meticulously examine your tax filings and financial records to ascertain your tax obligations. Proving full tax payment should conclude the inquiry. However, if underpayment is evident, demonstrating the lack of “willfulness” is crucial to avoid criminal liability.
“Willfully” attempting tax evasion is central to the crime. Government Proposed Jury Instruction Number 26.7201-5 clarifies this:
“A person may not be convicted of federal tax [fraud] on the basis of a willful omission alone; he/she also must have undertaken an affirmative act of evasion. . . . [Defendant] acted ‘willfully’ if the law imposed a duty on him/her, he/she knew of the duty, and he/she voluntarily and intentionally violated that duty. . . . This is a subjective standard: what did [defendant] honestly believe, not what a reasonable person should have believed. Negligence, even gross negligence, is not enough to meet the ‘willful’ requirement.”
Examples of affirmative acts that prosecutors may use in tax evasion cases include:
- Filing fraudulent returns with substantial income understatements.
- Maintaining dual sets of financial records.
- Fabricating entries, invoices, or documents.
- Failing to maintain books or records.
- Destroying financial records.
- Concealing assets.
- Hiding income sources.
- “Other conduct whose likely effect would be to mislead the Internal Revenue Service or conceal income.”
Non-willful underpayment, while not criminal tax evasion, can still result in civil tax fraud penalties and the obligation to pay the full tax amount. Therefore, when facing a tax evasion investigation under 26 U.S.C. Section 7201, a strategic defense is essential, prioritizing: (i) complete avoidance of liability and (ii) if unavoidable, ensuring civil rather than criminal resolution. A skilled tax evasion lawyer is crucial in navigating this complex process.
Why Choose Our Tax Evasion Lawyers?
Dr. Nick Oberheiden, founding attorney specializing in tax evasion defense.
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette Byrd
Lynette S. Byrd, Partner and former DOJ Trial Attorney, experienced in tax evasion cases.
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester, Partner and former U.S. Attorney, providing expertise in tax evasion defense.
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy, Government Consultant and former Speaker of the U.S. House, offering strategic insights.
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo, Of Counsel and former U.S. Secretary of State, bringing a wealth of experience.
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers, former Senior DOJ Trial Attorney, specializing in complex tax evasion cases.
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara, Federal Appeals Attorney, expert in appellate tax evasion matters.
Linda Julin McNamara
Federal Appeals Attorney
Jennifer W. Corinis, Litigation Counsel, dedicated to tax evasion litigation.
Jennifer W. Corinis
Litigation Counsel
Roger Bach, former Special Agent (DOJ), providing investigative support in tax evasion defense.
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick, former Special Agent (FBI & IRS-CI), offering specialized insight into tax evasion investigations.
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow, former Supervisory Special Agent (DOD-OIG), bringing extensive oversight experience.
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen, former Supervisory Special Agent (FBI), providing expert investigative strategies.
Ray Yuen
Former Supervisory Special Agent (FBI)
Facing Federal Tax Evasion Charges? Defense Strategies
If you are already charged with criminal tax evasion, your defense must target the specific allegations. You could be facing up to five years in prison and a $100,000 individual fine (plus tax and interest liabilities), or a $500,000 corporate fine (plus liabilities). Developing effective defense strategies requires a thorough evaluation of your case by a tax evasion lawyer.
Several defense approaches exist for federal tax evasion. Determining the most viable strategy necessitates a detailed assessment of the factual and legal circumstances. Potential defenses against tax evasion charges include:
1. Insufficient Evidence of Tax Underpayment
To convict under 26 U.S.C. Section 7201, prosecutors must first prove you underreported your tax liability. If the evidence is insufficient to demonstrate a false return, the government’s tax evasion case may fail, regardless of return accuracy. A skilled tax evasion lawyer will scrutinize the evidence for weaknesses.
2. Lack of Proof of Willful Tax Evasion Attempt
The government must prove a “willful” attempt to evade tax. If prosecutors lack evidence to convince a jury of your intent to evade taxes and knowingly file a false return, a criminal tax evasion conviction is not possible, even with underpayment. Your tax evasion lawyer will challenge the prosecution’s evidence of willfulness.
3. Inadequate Evidence of Affirmative Evasion Act
Proving criminal tax evasion requires evidence of an affirmative act to underpay. The DOJ bears the burden of proof. Without evidence of such an act, a conviction should not stand in federal court. A tax evasion lawyer will examine whether the prosecution has adequately proven an affirmative act.
4. Good-Faith Belief in Tax Return Accuracy
A good-faith belief in your return’s accuracy negates the element of willfulness. Even if unreasonable, a genuine belief in return accuracy means you did not commit criminal tax evasion under 26 U.S.C. Section 7201. Your tax evasion lawyer will explore and establish your good-faith belief.
5. Constitutional Violations and Evidence Inadmissibility
The legality of evidence collection is critical. Home or office raids, computer or phone seizures, or employee questioning must adhere to constitutional standards. Violations can render evidence inadmissible. Your tax evasion lawyer will investigate potential constitutional violations that could suppress key evidence.
Understanding Federal Tax Evasion Crimes
Tax Evasion [26 U.S.C. § 7201]: Knowingly and willfully underreporting income on a tax return to evade tax payment is tax evasion. It requires an affirmative act, not just failure to file, even if willful. “Willfully” means intentionally violating a known legal duty. Believing no taxes are owed, even if incorrect, negates tax evasion intent. A tax evasion lawyer can explain the nuances of willfulness and affirmative acts.
False Statements on Income Tax Returns [26 U.S.C. § 7206(1)]: Knowingly and willfully signing and submitting a return with materially false statements to violate a known duty is a crime. Material false statements can influence IRS actions. Mistaken beliefs or reliance on a tax preparer can be defenses. A tax evasion lawyer can assess the materiality of statements and potential defenses.
Aiding or Assisting in False Tax Document Preparation [26 U.S.C. § 7206(2)]: Knowingly and willfully assisting in preparing a false return is illegal, regardless of the taxpayer’s knowledge. A tax evasion lawyer can defend against charges even if you prepared documents for someone else.
Conspiracy [18 U.S.C. § 371]: Agreeing with someone to commit a crime, with an overt act in furtherance, constitutes conspiracy. In tax evasion conspiracy, awareness of the scheme’s illegality is needed. A tax evasion lawyer can evaluate conspiracy charges and your level of involvement.
Choosing the Right Tax Evasion Lawyer
Selecting the right tax evasion lawyer is a critical decision. Experience in federal tax law, particularly in criminal defense, is paramount. Attorneys with prior DOJ or IRS experience possess invaluable insights. Oberheiden P.C.’s team offers this depth of experience.
Contact a Tax Evasion Lawyer for Confidential Consultation
Oberheiden P.C. represents individuals and companies nationwide in tax evasion investigations, grand jury proceedings, and trials. If you are facing an IRS CI investigation or tax evasion charges, choosing the right legal representation is crucial. Our tax evasion lawyers offer experienced, strategic defense.
Contact us immediately for confidential assistance. Call 888-680-1745 to speak directly with a former federal prosecutor or request a free and confidential case assessment online now.
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