Tax Defense is a special division in taxation practice, exclusively of attorneys practicing in this field. Tax fraud is the federal offense involving the unpaid or under-payment of taxes. It is a crime that is punishable with heavy penalties and/or jail terms. Tax fraud can affect any person, company or institution and thus it is important that you look out for the signs and act quickly upon any such activities.
Tax defense lawyers are primarily concerned with issues arising under the Internal Revenue Code, as well as under state tax law. Federal tax law covers most issues regarding the taxation of individuals and companies, while state tax law covers aspects of taxation of corporations and other entity such as partnerships and limited liability partnerships. The states also have additional rules and regulations related to state tax fraud. The major federal tax laws are the Internal Revenue Code, and the Internal Revenue Code provisions relating to income taxes, said Tennessee tax lawyer.
Tax fraud can include many methods. The most common methods include: employer identification (also called an “innocent spouse” defense, which refers to a spouse who withholds income and pays the payroll taxes), under-reporting deductions (which may include self-employment tax deductions, but do not include the employee’s Social Security and Medicare contributions), under- Reporting actual income, misrepresentation about income and assets, etc. Other common methods include tax evasion through conduct of business, false statements in personal financial statements, tax avoidance through accounting schemes, preparation of false records, etc. Tax evasion penalties can include imprisonment (both federal and state), fines, tax liens, and other such civil penalties.
Tax evasion is, by definition, a crime. Thus, knowingly committing tax fraud crime, whether minor or major, is a crime. The nature of the charges and the state of the charged crime will generally determine the penalty. In general, a felony conviction will impose a greater penalty than a misdemeanor conviction.
It is always wise to consult a qualified criminal tax defense lawyer, preferably one with experience in both civil and criminal cases, when contemplating a tax-crime charge. These experienced tax lawyers will advise their clients on how best to plead, what evidence to use, and what penalty they should be able to expect (if anything at all). They will aggressively pursue the most favorable resolution for their clients’ cases, including a plea bargain. Tax evasion attorneys will also advise their clients on asset forfeiture and other tax crimes. Tax crimes can carry significant jail time, so it is vital that the tax fraud charge is properly presented to the right court. A skilled tax fraud attorney will take all of the necessary steps to ensure that his client receives the best possible outcome in the criminal tax investigation and prosecution.
Tax fraud is a crime, and while no one likes to think about being charged criminally, everyone should come to appreciate just how serious these charges are. It is extremely important that tax fraud perpetrators are put behind bars so that they cannot continue to defraud the American public. Tax attorneys represent their clients in both criminal and civil court cases and aggressively pursue the best outcomes for their clients.