Successful Tax Fraud and Tax Evasion Appeals

Federal Criminal Appeals Attorneys: Successful Tax Fraud and Tax Evasion Appeals

Tax Fraud Offenses: 26 U.S.C. § 7201, 26 U.S.C. § 7206, 26 U.S.C. § 7207, 18 U.S.C. § 371

Our boutique federal criminal appeals lawyers understand the serious consequences a federal tax fraud conviction carries. Whether your tax fraud offense involved tax evasion under 26 U.S.C. § 7202, inflation of deductions or under-reporting tax returns under 26 U.S.C. § 7206, making fraudulent returns or statements under 26 U.S.C. § 7207, conspiring to defraud the government regarding tax claims under 18 U.S.C. § 371, or any other type of federal tax fraud offense, a knowledgeable federal criminal appeals attorney can help you find relief from the conviction.

U.S. Sentencing Guidelines § 2T1.1-2T4.1: You Need a Federal Criminal Appeals Lawyer Who Knows Appropriate Sentences for Tax Fraud Convictions

If you believe the sentencing of your tax fraud conviction was unjust, it is urgent that you contact an experienced federal criminal appeals lawyer as soon as possible. The sentencing judge may have erroneously enhanced your federal tax fraud sentence, subjecting you to harsher penalties than appropriate.

The U.S. Sentencing Guidelines provides a roadmap for determining the offense level and sentence imposed on the defendant. Specific tax fraud sentencing guidelines were developed in 1987 in an effort crack down on tax fraud crimes, which ultimately increased average prison terms and fine ceilings. A tax evasion offense exceeding more than $10,000, for instance, increases the offense level by 2, or to level 12, if the offense level is less than 12. The Sentencing Guidelines Tax Table provides penalty increases for larger evasion and tax payment losses. The base offense level of 6 applies to a tax loss of $2,000 or less. A loss exceeding $2,000 increases the offense level to 8, a loss exceeding $5,000 increases the offense level to 10, a loss exceeding $12,500 increases the offense level to 12, and so on. The offense level peaks at level 36 for a tax fraud offense involving more than $400,000,000. The slightest misapplication of these sentencing guidelines can be extremely damaging, and you should not have to endure an unfair fine or prison sentence due to the mistakes of the lower courts.

Penalty Enhancements for Tax Fraud Convictions

The sentencing judge may drastically enhance your tax fraud sentence based on a number of factors. For instance, if the tax fraud conviction involved “sophisticated means,” or a deliberate and elaborate plan to reach tax fraud, your sentence may be subject to significant enhancement. If tax evasion was in connection with another white-collar crime such as larceny, embezzlement, a RICO violation, or money laundering, you can also receive a substantial penalty enhancement. It is possible that your sentence was unfairly enhanced. Don’t hesitate to consult with a federal criminal appeals attorney to discuss the possibility of appealing your tax fraud sentence. Call us today at 1-800-APPEALS.

Federal Criminal Appeals Lawyers Know Tax Evasion Convictions

Tax Evasion Overview: 26 U.S.C. § 7201

Federal law makes it illegal to willfully attempt to evade or defeat taxes. Under § 7201, any person who attempts to do so will be guilty of a felony and can be fined up to $250,000 ($500,000 for a corporation) and receive a sentence of up to 5 years in prison. Tax evasion typically involves income tax returns, in which an individual or corporation omits income on a return, makes false claims or deductions, or falsely understates a tax return. These acts must be deliberate and the prosecution must show that the criminal tax adjustments include evidence of criminal intent. A passive failure to file a tax return is not tax evasion. An affirmative action attempting to evade tax includes filing a false return, “spies evasion”, failing false W-4’s coupled with failure to file a Return Equals Evasion, and more.

Spies Evasion under 26 U.S.C. 7201

“Spies Evasion” is the failure to file a tax return paired with another affirmative act of tax evasion. Affirmative acts include making false or altered entries, destruction of records, keeping a double set of books, concealing sources of income, making false invoices, and other similar conduct with a goal to mislead the IRS.

Tax Evasion Prosecution: Evidence of Criminal Intent and Willfulness

In order to be prosecuted criminally for tax evasion, the government must prove that the illegal tax adjustments include evidence of criminal intent and that the offense involved conduct that would likely lead to misleading the government or concealing income from the government. Such conduct includes signing a return with knowledge that the contents of the return understated income, failure to supply an accountant with accurate and complete information, substantial understatement of income in successive years, prior and subsequent similar acts close to the prosecution years, and so forth. If you believe the court erred in its decision because the prosecution did not correctly prove intent or willfulness, you may be able to appeal your tax fraud conviction.

Federal Tax Fraud: Evasion of Payment under 26 U.S.C. § 7201

Evasion of payment occurs after the Internal Revenue Service (IRS) has already discovered that the offender has avoided paying taxes, and an offender then attempts to conceal money or assets with which taxes could be paid. Examples of evasion of payment include extensive use of cash and third party credit cards to make payments and placing assets in the names of third parties, a taxpayer’s false statement to an Internal Revenue Services (IRS) agent denying ownership of property, concealing assets by using the bank accounts of others, conducting all person and business transactions in cash, and bankruptcy fraud.

Federal Criminal Appeals Attorneys Equipped to Handle Corporate Tax Fraud

The penalties imposed for individual tax fraud are already severe, but when a tax fraud offense involves a corporation, the penalty ceiling rises significantly. Corporations are required by U.S. law to file annual income tax returns and have distinct requirements from the IRS from individual taxpayers. When these requirements are not met, heavy penalties may follow. While an individual can be fined up to $100,000 for tax fraud, a corporation can be fined up to 5 times more plus the prosecution costs of each tax fraud offense. Not only can a corporate tax fraud conviction be costly, but it can also be detrimental to your business. If your corporate tax fraud conviction is threatening the survival of your business, it is important that your consult with a federal criminal appeals attorney as soon as possible.

Employment Tax Fraud: Federal Criminal Appeals Understand Employment Tax Evasion Convictions

Employment tax fraud convictions can stem from an array of offenses. Common situations from which employment tax fraud can arise include failure to pay employment taxes to the government, hiring illegal immigrants and failing to pay their payroll taxes, and paying employees under the table. Internal Revenue Services (IRS) outline the types of Employment Tax Evasion Schemes as:

1. Pyramiding: The fraudulent practice where a business withholds taxes from its employees but intentionally fails to remit them to the IRS
2. Employment Leasing: The practice of contracting with outside businesses to handle all administrative, personnel, and payroll concerns for employees. Abuse happens when the employee-leasing companies fail to pay over to the IRS and the money is spent by the business or owners instead.
3. Paying Employees in Cash: The method of tax evasion that not only results in lost revenue for the government but also a loss of employee benefits for the employee.
4. Filing False Payroll Tax Returns or Failing to File Payroll Tax Returns: Preparing false payroll tax returns understating the amount of wages on which taxes are owed, or failing to file employment tax returns are methods commonly used to evade employment taxes.

Offshore Accounts Fraud: Serious Federal Tax Fraud Convictions Require Serious Federal Criminal Appeals Lawyers

Although offshore financial activity is legal, citizens and corporations of the United States are still legally bound to paying income taxes from offshore accounts. Individuals and corporations who use offshore accounts to conceal income and assets from the government in an effort to avoid paying taxes can face heavy fines and penalties.

Abusive Offshore Tax Avoidance Program

Within the realm of offshore tax fraud is the Abusive Tax Scheme Program, which concerns taxpayers who exploit secrecy laws of offshore jurisdictions in an effort to hide income and assets prone to tax by the U.S. government. Types of entities and schemes used in Abusive Offshore Tax Schemes are the use of foreign trusts, foreign corporations, foreign partnerships, LLCs and LLPs, International Business Companies (IBCs), offshore private annuities, private banking, and more.

Appealing Money Laundering Tax Fraud Convictions

Money laundering and tax evasion typically go hand in hand since they are inevitably closely linked. When money is not being accounted for in the case of a money laundering scheme, taxes aren’t being paid. Illegal income such as income stemming from drug trafficking or other illegal activity is often “laundered” so that the government does not detect the illegal source. Upon discovery of the money laundering scheme, prosecution will likely attempt to convict the defendant with tax fraud.

Federal Tax Fraud: Why Should You Contact a Federal Criminal Appeals Attorney?

Tax fraud laws are already complicated and the federal criminal appeals process is far from simple. For a successful appeal from your tax fraud conviction, you need the expertise of a dedicated federal criminal appeals lawyer to help you navigate the waters of your appeal. Our experienced attorneys have decades of experience in federal criminal appeals and are superior legal writers and orators. The federal criminal appeals attorneys at our boutique firm craft persuasive briefs and present assertive, concise arguments so that the errors of the lower court are not overlooked by the panel of appellate judges. Don’t wait until it is too late to appeal your federal tax fraud conviction. Discuss your options with an experienced federal criminal appeals lawyer today at 1-800-APPEALS.

Tax Related Convictions