Federal Tax Evasion

The amount of money lost by the federal government due to individuals, businesses and other entities avoiding paying taxes by illegal means goes into the hundreds of billions of dollars on an annual basis. In most cases, this is achieved by the misrepresentation of income to the Internal Revenue Service. The penalties for a conviction of this federal crime can be harsh including up to five years of incarceration as well as fines up to $100,000 for an individual and $500,000 for a corporation or group. Interest on the amount of money in question will also be assessed upon a successful prosecution that leads to a conviction as well as the defendant being held responsible for the costs involved in the case presented against them without taking into account the repayment of the amount of taxes due that were not reported or hidden.

In order for the government to prove their case and achieve a successful prosecution they must establish three things. The first is proving that an unpaid tax liability exists. Secondly, they must show that the accused enacted a maneuver to avoid paying this liability by an illegal method, and third the prosecution must demonstrate that there was intent to defraud by the actions taken.

Many cases of tax evasion arise through charges that originate through convictions of other crimes. Specifically, if a group or individual is found guilty of any crime that involves profits acquired through illegal activities it is almost certain that the ill-gotten gains would not be declared as income; as doing so would be an admission of guilt of the underlying offense.

One of the best examples of this is the investigation, arrest and conviction of mob boss Alphonse Capone in the 1920’s and 30’s.

Capone was the kingpin of a criminal enterprise based out of Chicago who for many years was under investigation for multiple gangland murders, illegal gambling, prostitution and extortion rackets, as well as the illegal manufacture, trafficking and sale of consumable alcohol which had been made illegal under the Volstead Act that started Prohibition in the United States in 1919 under the Eighteenth Amendment. He was also under investigation for witness tampering among many other disreputable criminal charges.

Federal authorities were never able to make any of the charges stick but he was brought down when found guilty of tax evasion that resulted with an eleven year sentence in federal prison. He had only once previously spent time behind bars (10 months) when he was convicted of possessing a concealed handgun in Philadelphia in 1929.

According to the Encyclopedia Britannica, Capone’s vast criminal enterprise brought in over 100 million dollars in illegal proceeds from his various illegal operations which would be worth more than a billion dollars today based on present monetary valuation.

More recently, country singer Willie Nelson, actors Wesley Snipes and Nicolas Cage as well as the Hollywood Madam Heidi Fleiss spent time in federal prison and/or paid millions in fines and penalties for their convictions of the crime. Before being convicted of insider trading, Martha Stewart was convicted of tax evasion and had to pay more than $200,000 due for unreported revenue along with penalties assessed. She did not spend time in prison for that particular offense. The list of celebrities and the rich and famous goes on and on.

But not only celebrities and the wealthy are affected by charges of tax evasion. In any given year the IRS initiates over five thousand investigations of tax evasion cases of which more than half result with convictions. Most cases target small businesses as well as individuals.

If you become aware that you’re the object of a federal tax evasion investigation or if you have been accused with the allegation of failure to properly file a tax return or any other federal offense it is important that you retain an attorney who has vast experience within the federal legal system. There are always available defenses and compromises for any federal charges alleged by the IRS or the government which my experience within the federal system and its Agencies gives clients the necessary representation to counter all federal criminal allegations.

My law office is dedicated to the best defense available in matters relating to federal tax fraud, evasion and other federal charges and principally focuses on federal cases. My previous experience as an Assistant Federal Prosecutor in many high profile cases and now as a criminal defense attorney which includes more than thirty-five years of courtroom involvement, a major portion of these cases within the federal court system qualifies my law firm to bring proposed settlements negotiated between my law firm and the Internal Revenue Service and/or the government together with clients to mutually decide if an offer to put an end to the situation is the best solution for their consideration, or if it may be more advantageous to fight for a better concession or go to trial when necessary.

To view my qualifications and read what you should do if tax evasion charges are alleged or if you are under investigation, arrested or charged with any other federal crimes, click here.