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Tax Fraud


Title 26, United States Code, Section 7201

Title 26, United States Code, Section 7203

Title 26, United States Code, Section 7206

Tax evasion as defined by 26 USC §7201 occurs when any person who willfully attempts in any manner to evade or defeat any Federal tax. This section reads, “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

To be convicted of tax evasion three elements must be proven:
 

  • That the defendant had a substantial income tax deficiency;
  • That the defendant made an affirmative attempt to evade or defeat the payment of the income tax; and
  • That the defendant acted willfully.

The government does not have to prove the exact amount owed or evaded. The only thing it must establish is that the defendant knew and understood that he or she willfully intended to evade or defeat the tax due. An affirmative act is any act performed to mislead the government with respect to the amount of taxes due or to conceal income to avoid the assessment or payment of a tax. Misrepresentations of income tax may take the form of underreporting income, inflating deductions, or hiding money and its interest altogether in offshore accounts.

Failure to file a tax return as defined by 26 USC §7203 occurs when any person required by law to pay a tax, or to make a return, or keep any records who fails to pay the tax, make the return or keep the records. This section read, “ Any person required under this title to pay any tax… who willfully fails to pay such tax… shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than one year, or both together with the costs of prosecution.

Lebedin Kofman LLP

Russ Kofman is a founding partner in Lebedin Kofman LLP. He has extensive litigation experience defending clients accused of felonies, misdemeanors and DWI/ DUI crimes.

To be convicted of failure to file a tax return three elements must be proven:
 

  • That the defendant was required to file a tax return;
  • That the defendant did not file a tax return at or before the time required by law or regulation;
  • That the defendant’s failure to file was willful.

Filing a false tax return as defined by 26 USC §7206 occurs when anyone willfully makes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury and the person does not actually believe such to be true and correct as to every material matter. A conviction of filing a false tax return will result in a felony and a fine of not more than $100,000 ($500,000 in the case of a corporation) or imprisonment of not more than three years, or both, together with the costs of prosecution.

To be convicted of filing a false tax return five elements must be proven:
 

  • That the defendant made and subscribed and filed a tax return;
  • That the tax return contained a written declaration that it was made under the penalties of perjury;
  • That the return was false regarding a material matter;
  • That the defendant did not believe that the return was true and correct as to that material matter; and
  • That the defendant acted willfully.

For more information on Tax Fraud, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 500-3273 today.

Lebedin Kofman LLP

Russ Kofman is a founding partner in Lebedin Kofman LLP. He has extensive litigation experience defending clients accused of felonies, misdemeanors and DWI/ DUI crimes.

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