blog home Financial Crimes Can You Go to Jail for Tax Evasion?

Can You Go to Jail for Tax Evasion?

By Los Angeles Criminal Defense Attorney on October 20, 2024

You can face jail time if you are found guilty of tax evasion. However, you can also take measures to reduce your risk if you are under investigation and could be facing charges for tax evasion.

What Is Tax Evasion?

Tax evasion occurs when someone deliberately hides or falsifies information to avoid paying taxes they legally owe. It goes beyond an honest mistake or a minor oversight on a tax return. Instead, it involves a willful attempt to cheat the government out of funds—whether by failing to report all income, claiming illegitimate deductions, or using hidden bank accounts to conceal earnings.

When the government, often through IRS criminal investigations, suspects that you’ve knowingly submitted inaccurate or incomplete information on your tax returns, you could face criminal tax evasion charges.

Some people confuse tax evasion with lesser mistakes, such as misfiling or forgetting to include a small amount of income. However, ignorance alone is not typically enough to shield you if the government can prove intent.

The Internal Revenue Service (IRS) and the Department of Justice take tax fraud charges very seriously—as willful tax evasion is a high-risk offense. Thus, prosecutors may argue that by concealing income or inflating deductions, you have intentionally committed fraud and have violated the law.

Can Tax Evasion Lead to Jail Time?

Yes. A conviction for tax evasion can mean severe penalties. When asked if you can go to jail for tax evasion, it’s crucial to understand that federal courts often impose prison terms on individuals found guilty.

The maximum sentence for a single count of federal tax evasion can be up to five years in prison. However, the actual sentence varies depending on the facts of the case and the individual’s criminal history.

Moreover, punishment for criminal tax evasion can include more than just incarceration. For example, courts can also impose steep fines, probation, and restitution obligations. In many cases, those convicted must pay tax fraud fines that far exceed the amount of unpaid taxes.

Consult a tax fraud defense attorney if you’re under investigation or have been charged because there’s so much at stake.

Factors Influencing Jail Time for Tax Evasion

Not every person accused of tax evasion will receive the maximum penalty. Federal guidelines allow judges to consider various factors when determining a sentence. While nothing is guaranteed, understanding what these factors are—and how they might apply to your situation—can help you and your tax fraud lawyer in Los Angeles develop a strong defense.

Intent and Willfulness of the Offense

Tax evasion cases often hinge on the concept of “willfulness.” This means that the government must prove you acted intentionally to evade taxes, not merely that you made a mistake.

If prosecutors demonstrate you deliberately hid income or falsified returns, your risk of facing severe penalties for tax evasion increases. But if you can show that any inaccuracies resulted from confusion or a genuine oversight, you might reduce your chances of harsh punishment.

Amount of Money Involved

The IRS and Department of Justice allocate significant resources to prosecuting cases involving large sums of money. If the unreported income or illegal deductions amount to a significant figure, prosecutors typically push for stiffer sentences.

Even smaller cases can lead to jail time. In general, though, the higher the amount at issue, the more likely you are to face a lengthy sentence.

Cooperation with Authorities

Prosecutors may take your level of cooperation into account when recommending sentences. For example, if you choose to work with investigators, provide honest information, or enter a plea deal, you could receive more lenient treatment. However, cooperation does not guarantee a light sentence. It’s therefore wise to consult a tax evasion defense lawyer before speaking to investigators so you can understand the potential risks and benefits of cooperation.

Defending Against Tax Evasion Charges

Facing tax fraud proceedings can be intimidating. Fortunately, certain defenses may help you avoid prison or lessen your penalties. A robust legal strategy is critical if you hope to protect your freedom, finances, and reputation.

Legal Defenses in Tax Evasion Cases

While specific defenses vary from case to case, a criminal defense lawyer for tax fraud might employ the following arguments:

• Lack of willfulness: Arguing that any errors on your tax returns were unintentional or due to misinformation.
• Insufficient evidence: Challenging the quality or completeness of the evidence the government has against you.
• Reliance on tax professionals: Showing that you reasonably relied on an accountant or tax preparer who made mistakes without your knowledge.
• Statute of limitations: In some situations, the government may have missed the filing deadline to bring charges.

Seeking Professional Legal Help

Tax law is notoriously complex, and the federal government can be relentless in pursuing alleged offenders. If you’re under investigation, consulting a tax fraud lawyer in Los Angeles—especially one with experience in IRS criminal investigations—can significantly improve your odds of a favorable outcome. Legal counsel can:

• Guide you through each step of the investigation process.
• Help you gather and present evidence of good faith or lack of willfulness.
• Negotiate plea bargains that reduce or eliminate jail time.
• Advocate on your behalf during every stage of court proceedings.

Consequences Beyond Jail Time

Time behind bars is not the only risk you face when charged with criminal tax evasion. These repercussions can change your life long after you’ve served your sentence or paid your fines. Additional consequences can include:

• Fines and restitution: Courts often impose fines that can run into hundreds of thousands of dollars. You may also be ordered to pay back taxes, along with interest and penalties.
• Damage to reputation: A criminal conviction, especially for financial crimes, can severely hurt your career, social standing, and personal relationships.
• Probation and supervised release: After serving time, you might need to comply with strict supervision conditions that limit your freedom of movement or financial transactions.
• Professional license revocations: If you hold a professional license—like a CPA certification—tax fraud or evasion charges may lead to suspension or permanent revocation of that license.

How to Avoid Tax Evasion Charges

While anyone can make errors when filing taxes, allegations of willful tax evasion typically require a clear pattern of misconduct. By staying diligent and organized, you can reduce the chances of drawing unwanted attention from the IRS.

Proper Tax Filing and Documentation

• Keep detailed records: Maintain receipts, invoices, bank statements, and other relevant documents to support your reported income and deductions.
• Check for accuracy: Ensure that every figure on your tax return is correct, especially when listing income and deductions.
• File on time: Late filings can trigger penalties and suspicions. Even if you can’t pay, filing your return by the deadline (or requesting an extension) can minimize complications.

Regular Audits and Professional Help

• Hire a qualified tax professional: Relying on an experienced accountant can help you avoid mistakes and oversights.
• Conduct self-audits: Periodically review your financial records to catch and correct any errors early.
• Stay informed: Tax laws change regularly. Keeping up with new regulations ensures you’re filing accurate returns.

Ultimately, the best way to stay out of trouble is to be proactive. If something seems off, address it immediately rather than ignoring the problem. A small oversight can grow into a massive liability if left unchecked.

Contact Werksman Jackson & Quinn LLP for Tax Evasion Defense

If you suspect you’re under investigation or have already been charged with tax evasion, don’t face these charges alone. Werksman Jackson & Quinn LLP has a proven track record of defending clients against some of the harshest allegations, including tax fraud charges. Our dedicated lawyers will assess your case, craft a personalized defense strategy, and work tirelessly to protect your rights and financial security.

Whether you need immediate representation or want to resolve an IRS dispute before it escalates, you’ll have experienced attorneys fighting for your best interests every step of the way with Werksman Jackson & Quinn LLP. Call us at (213) 688-0460 today for a free consultation.