When people think of tax fraud, they often think of the federal government. If you are being charged with a federal criminal case, the federal government is probably the entity that will prosecute your case.
If you are being charged with tax fraud related to the EDD or the state of California, then the state might handle your case and try it in downtown Los Angeles at 210 West Temple Street.
Tax evasion cases are usually federal. Many people make large amounts of money and want to avoid paying taxes to their government. Once the government finds out, it will file a criminal case under 26 U.S.C. § 7201. Our federal criminal defense lawyers provide a review below.
IRS Criminal Investigation
IRS Criminal Investigation: The IRS typically initiates tax fraud cases as civil investigations, which may later be escalated to criminal investigations. The IRS tends to get involved in cases with large dollar figures, conducting thorough investigations to gather evidence for potential criminal charges.
Often, the person will be given a chance to explain why they are not paying taxes and may be allowed to pay those taxes before a criminal case is filed.
If the person doesn't pay their taxes or has committed blatant tax fraud, the government will file a criminal case.
Federal authorities also pursue tax evasion cases involving people who are not reporting their income because it is being earned through criminal activity.
When considering tax fraud at the federal level, it is important to realize that the government is like the mafia; it needs to get a piece of every dollar earned in the United States, and if it doesn't, it will come looking for its money.
Who Actually Has The Burden Of Proof In A Federal Tax Fraud Case?
In any criminal case, the government has the burden of proof to prove the case beyond a reasonable doubt. If you are charged with a federal crime such as tax evasion, you are entitled to have 12 jurors listen to the evidence.
Before the government can get a conviction, the jury must render a unanimous guilty verdict. When it comes to tax evasion, the government is usually pretty good at building cases.
They are also good at getting the discovery to indict defendants, including all the documents, surveillance videos, and any other forms of evidence. In any criminal case, there is the potential for jail time.
However, in the eyes of the law, you are presumed innocent until proven guilty. This means that the burden of proof lies with the government, and they must present compelling evidence to convince the jury of your guilt. You have the right to a fair trial, and the government must prove their case beyond a reasonable doubt.
What Are Potential Penalties For Federal Criminal Tax Fraud?
The potential penalties for federal criminal tax fraud can be severe. The government can impose a range of punishments, including fines, probation, and imprisonment. Typically, a judge will determine the sentence, but the government's influence is significant as they file the charges.
If there are enhancements related to the amount of money supposedly involved in tax evasion or tax fraud, then that could increase the severity of the punishment.
Typically, federal prison time will be sentenced. Most people who get a federal prison sentence have to serve 85 percent of that sentence.
Another powerful weapon the government has in tax fraud cases is the ability to freeze bank accounts and seize or forfeit properties. If they feel that money was not paid to them by a person who has assets, they will try to obtain those assets.
What Are Possible Defense Strategies In Tax Fraud Cases?
If you paid your taxes and filed your tax returns, but the government is claiming that you didn't, then you would have a strong defense. When it comes to tax fraud at the federal level, the defenses used are usually driven by whatever happened in the case.
The key is, to be honest with your attorney and review all of the discoveries in the case so that you know the nature of the allegations against you.
If the allegations are untrue or inflated, then tell this to your attorney, and your attorney will do the talking for you. You and your attorney will decide whether your case should be fought at the jury trial level or whether a plea bargain should be pursued.
With 26 years of experience, I've talked to people in similar situations countless times. When clients are honest with me, I am in the best position to help them through their criminal cases and obtain the best possible results.