Criminal Lawyers In San Francisco For Tax Offenses

You have the right to manage your finances in a manner that legally reduces the taxes you pay the IRS or the state of California. However, if the authorities believe you are violating the law to avoid paying the taxes you legitimately owe, you could be facing very serious legal consequences. Both the IRS and the Franchise Tax Board are aggressive when pursuing tax evasion, supported by the almost unlimited resources of the state or federal government.

A tax offense may be identified by the tax authorities due to a report from an employee, partner, former spouse or after an audit. You may become aware of the problem when IRS special agents appear at your door. We urge you to exercise your right to remain silent and do not agree to one of these interviews until you have your attorney present to manage the situation. These investigators will not arrive at your home or business unless they have a significant amount of evidence against you.

As a boutique federal criminal defense firm with over 25 years of combined experience, we take on fewer cases so we can give yours the focused, personal attention it demands. Connect with our legal team at Hickey & Chung, LLP, as your first action.

Types Of Tax Fraud: Title 25 Tax Violations

Several types of tax offenses can lead to an investigation or charges filed against you. These include, but are not limited to:

• • Failure to pay tax
  • Failure to file a return
  • Failure to keep records
  • Failure to supply information
  • Evasion of assessment
  • Evasion of payment
  • Collateral Estoppel
  • Tax fraud
  • Fraudulent tax returns
  • Conspiracy to defraud the USA
  • Conspiracy to impede, obstruct, or impair the IRS (Klein Conspiracy)
  • Evasion of assessment
  • Evasion of payment

Any of these charges can trigger a federal investigation and potential prosecution.

Tax Evasion Charges

Section 2701 of the IRC creates two different types of offenses:

• The willful attempt to evade or defeat the assessment of a tax: These cases involve the accusation that you filed a false return that fails to reveal income or in which deductions were taken to which you were not entitled.
• The willful attempt to evade or defeat the payment of a tax. When taxes due have been established, either through the filing of returns or due to an assessment by the IRS, and is then not paid, typically in a case in which assets were available to pay the tax but concealed, tax evasion charges can be brought.

Either charge is serious. A conviction can mean federal prison and financial penalties that follow you for years.

Filing A False Return: Associated Acts That Can Lead To Criminal Charges

The IRS may accuse you of having engaged in a range of illegal acts:

• Falsifications of records, in which a double set of books are kept
• Entering false or altered information in accounting records
• Creating false invoices
• Destroying records
• Concealing sources of income
• Handling financial transactions in a manner to avoid recording the transaction

Federal prosecutors can use any of these acts to establish willful fraud.

Consequences: Penalties For Tax Offenses

Tax evasion is a felony offense. A conviction will lead to expensive fines, up to $100,000 for an individual and up to $500,000 for a corporation. Imprisonment in federal prison can be imposed as part of a sentence with a five-year limit.

Frequently Asked Questions About Tax Offenses In San Francisco

Tax offense cases raise a lot of uncertainties. Below, we answer the questions we hear most.

What is the difference between tax avoidance and tax evasion?

Tax avoidance is legal. Tax evasion is a federal crime that can be charged as a felony. Tax avoidance means using the tax code to your advantage, such as claiming legitimate deductions and credits to reduce your liability. Tax evasion is an illegal attempt to defeat or evade the assessment or payment of a tax. The difference lies in legality and intent. One is smart financial planning, while the other is a federal crime.

What should you do if an IRS Special Agent knocks on your door?

If an agent from the IRS Criminal Investigation Division (CI) visits you, do not treat it as routine. These agents specialize in gathering evidence that can lead to a federal indictment. Here is what you should do:

• Politely decline to answer questions
• Do not invite the agent inside
• Ask for the agent’s name and contact information
• Do not attempt to “clear things up” on your own
• Contact a criminal defense attorney immediately

Prosecutors can use anything you say against you in a criminal prosecution, so act quickly to protect your rights.

How long does the IRS have to charge you with tax evasion?

The IRS typically has six years to bring criminal charges. The statute of limitations for most tax crimes, including tax evasion under 26 U.S.C. § 7201 and filing a false return under 26 U.S.C. § 7206(1), runs six years from the date of the offense or your last willful act of evasion.

Certain exceptions can toll, or pause, this period. Contact Hickey & Chung, LLP, to determine how the statute of limitations applies to your specific situation.

Should you amend your tax return if you are under investigation?

Do not amend your return before consulting a defense attorney. Filing an amended return during an investigation can signal consciousness of guilt and may harm your defense. What looks like an honest correction can invite more scrutiny from investigators. An attorney can assess your situation and guide you on the right steps before you take action.

Connect With Hickey & Chung, LLP, Today

It is critical that your rights are protected by a lawyer with a reputation as a talented litigator with a breadth of experience in the complexities in tax law and a record of success in challenging cases. At Hickey & Chung, LLP, our legal team will engage in every legal action that could help mitigate the damage to your financial health and reputation, with the support of professional resources such as PIs, financial consultants, and tax advisers.

We urge you to contact us immediately at 415-484-4547 if you become aware that you are under investigation by state or federal tax authorities. Time is of the essence.