The Internal Revenue Service (IRS) does not take allegations of tax evasion lightly. The agency suspects a taxpayer has committed this crime, it will investigate and pursue charges. A recent case provides an example.
Was a taxpayer hiding assets?
The IRS recently pursued criminal charges against a taxpayer based on allegations of tax evasion. According to the indictment, the IRS accused the taxpayer of neglecting his taxes from 2009 through 2016. Based on the original tax evasion charges the accused faced up to five years imprisonment and a maximum fine of $250,000.
The agency accused him of avoiding taxes by putting property and other assets under different names. The IRS also stated the accused fraudulently stated he received no income from 2009 through 2017. The agency states this is untrue, and that they had evidence to support the contention he had earned income while working at a marketing company.
Ultimately the court found in favor of the IRS.
Penalties: Taxpayer faces harsh consequences
A District Court sentenced the accused in August. The court ordered the accused to pay $607,210 in restitution and serve 18 months in prison for his crime. The financial penalty is more than the maximum fine for the crime. This is likely because the IRS generally requires those who are convicted of tax evasion to repay their tax obligations in addition to paying the fine.
These types of penalties are not uncommon. The IRS is aggressive in its pursuit of those who evade tax obligations. As such, those who find themselves the subject of such an investigation have options. An attorney experienced in resolving criminal tax issues can tailor a defense strategy to your situation and help better ensure your legal rights are protected.