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Las Vegas Tax Evasion Attorney

Last Modified: December 18, 2023

Skilled Tax Evasion Defense Attorney In Las Vegas, Nevada

Both individuals and businesses can be held responsible for criminal activities pertaining to tax fraud if they knowingly provide inaccurate information to the IRS. Moreover, failure to report essential details like offshore accounts or income may lead you to an investigation conducted by the Internal Revenue Service’s investigative division. The consequences of disregarding all regulations in the US Tax Code are severe; therefore, it is critical that taxpayers adhere strictly when filing their taxes with the government.

In the event you’re under investigation or have been charged with violating tax rules and committing fraud, taking proactive action to seek criminal defense help is pivotal. At Spartacus Criminal Defense Lawyers, our Las Vegas tax evasion defense attorney is ready to provide support in your hour of need when it comes to responding to any allegations of tax fraud. Our services extend throughout Nevada so don’t hesitate to give us a call right away if you’ve been accused.

Understanding Tax Evasion Charges

Tax evasion consists of both illegal nonpayment and underpayment of taxes. Even if a taxpayer doesn’t submit the necessary tax forms, the IRS can still discern whether or not taxes were owed by examining documents that must be submitted from third parties such as W-2s from employers or 1099s. A person is usually only considered guilty of evading their taxes when it is determined to have been done intentionally.

Delinquent taxpayers should be aware of the serious ramifications they may face. It must first be demonstrated that their failure to pay taxes was done intentionally, after which point the IRS can impose significant penalties ranging from substantial fines up to and including jail time. For individuals, this could mean a maximum penalty of five years imprisonment or $250,000 in fines (or both). Similarly, corporations are liable for a possible fine of $500,000 along with associated prosecution costs.

NRS 360.340 Penalty for deficiency resulting from fraud or intentional evasion of payment of tax or fee or of regulations. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade the payment of a tax or fee administered by the Department or the authorized regulations of the Department, a penalty of:

1. Except as otherwise provided in subsection 2, 25 percent of the amount of the determination must be added thereto.

2. In the case of a tax imposed pursuant to chapter 372 or 374 of NRS with respect to the sale, storage, use, or other consumption of any vehicle, vessel, or aircraft, three times the amount of the determination must be added thereto.

Types of Tax Avoidance

Taxpayers have many options available to them to lower their tax burden, including claiming credits and deductions, and utilizing exclusions or loopholes within the U.S Tax Code. Below are a few of these powerful tools that can be used in order to take advantage of tax avoidance strategies:

The Standard Deduction

According to the Urban-Brookings Tax Policy Center, almost all households will take advantage of the standard deduction for their taxes in 2022 and 2023. The amount allocated for single filers is $12,950 this year and rises to an even higher figure of $13,850 next year. Married couples filing jointly are currently entitled to a sum of $25,900 which is increased to a maximum rate of  $27,700 come 2023.

Most Americans are unable to benefit from the mortgage interest deduction, especially with the Tax Cuts and Jobs Act (TCJA) of 2017. This act caused a substantial rise in standard deductions while capping deductions for state and local taxes at $10,000.

Many small business owners, freelancers, and investors are motivated to save every eligible expense receipt for deductions. Others take on the IRS challenge by trying to leverage all possible credits and deductions available. However, this tax-saving strategy can quickly become abused and require a Las Vegas tax evasion defense attorney if the IRS comes after you.

Retirement Savings

When saving money for your retirement, you’re likely engaging in tax avoidance – and that’s a good thing! Employer-sponsored retirement plans or individual Retirement Accounts (IRAs) make it so easy to avoid taxes. In addition, every person who invests in them benefits from this wise decision over the long term.

Traditional plans permit investors to achieve a significant tax advantage each year, up to the annual limit set by the IRS. As they withdraw their savings upon retirement, taxes will be due on those funds; however, since retirees’ taxable income is likely lower at that point in life than during peak earning years, less money can end up going towards taxes – this is known as tax avoidance.

With Roth plans, investors can save their hard-earned money in after-tax accounts and reap the benefits of tax breaks later on when they are retired. Every penny saved is 100% tax-exempt. What’s more, Roths make it possible for savers to prevent income taxes from profiting off their contributions in the long run.

Workplace Expenses

Don’t let taxes eat away your hard-earned money! Utilize deductions available through your workplace to reduce the amount of taxes you owe. You could be able to list certain non-reimbursed costs on your tax return, which are essential for job performance purposes. Examples include mileage in a personal car, union dues, or any tools you may require for work tasks.

Offshoring

By exploiting loopholes in the U.S. Tax Code, corporations and high-net-worth individuals are able to avoid paying higher taxes at home while reaping numerous benefits from relocating their money to offshore tax havens – places with looser regulations, more attractive fiscal laws and policies, diminished financial risks, as well as confidentiality protections. Through creating subsidiaries or opening bank accounts abroad these entities can secure greater monetary gains by escaping hefty taxation rates back home.

Felony of willful evading or defeating tax may include one or several of other offenses against revenue laws, but it cannot be regarded as meaning no more than same dereliction defined in other portions of statute as misdemeanors; difference between misdemeanor of willful failure to pay tax when due and felony offense of willful intent to evade or defeat tax, is found in affirmative action implied from term “attempt” as used in felony section. Spies v. United States, 1943-1 U.S. Tax Cas. (CCH) P 9243, 43-1 U.S. Tax Cas. (CCH) ¶ 243, 317 U.S. 492, 63 S. Ct. 364, 87 L. Ed. 418, 1943 C.B. 1038, 30 A.F.T.R. (P-H) 378, 1943-1 U.S. Tax Cas. (CCH) ¶ 9243, 43-1 U.S. Tax Cas. (CCH) P9243, 1943 U.S. LEXIS 1273 (1943).

Offense of willfully failing to make return is distinct and separate offense from that of willful evasion of tax. United States v. Capone, 1938-1 U.S. Tax Cas. (CCH) P 9011, 38-1 U.S. Tax Cas. (CCH) ¶ 011, 93 F.2d 840, 20 A.F.T.R. (P-H) 603, 1938-1 U.S. Tax Cas. (CCH) ¶ 9011, 38-1 U.S. Tax Cas. (CCH) P9011, 1937 U.S. App. LEXIS 2913 (7th Cir. 1937), cert. denied, 303 U.S. 651, 58 S. Ct. 750, 82 L. Ed. 1112, 1938 U.S. LEXIS 170 (1938).

Failure to file return will not confine prosecution for income tax evasion if prosecution by evidence of other affirmative acts can prove willful attempt to evade tax. United States v. Smith, 1953-2 U.S. Tax Cas. (CCH) P 9538, 53-2 U.S. Tax Cas. (CCH) ¶ 538, 206 F.2d 905, 44 A.F.T.R. (P-H) 342, 1953-2 U.S. Tax Cas. (CCH) ¶ 9538, 53-2 U.S. Tax Cas. (CCH) P9538, 1953 U.S. App. LEXIS 4117 (3d Cir. 1953).

Failure to pay tax and attempt to defeat and evade one, must both be willful; however difference between two offenses is found in affirmative action implied from term “attempt.” United States v. Bardin, 1955-1 U.S. Tax Cas. (CCH) P 9488, 55-1 U.S. Tax Cas. (CCH) ¶ 488, 224 F.2d 255, 47 A.F.T.R. (P-H) 1383, 1955-1 U.S. Tax Cas. (CCH) ¶ 9488, 55-1 U.S. Tax Cas. (CCH) P9488, 1955 U.S. App. LEXIS 5483 (7th Cir.), cert. denied, 350 U.S. 883, 76 S. Ct. 134, 100 L. Ed. 778, 1955 U.S. LEXIS 190 (1955), reh’g denied, 350 U.S. 919, 76 S. Ct. 193, 100 L. Ed. 805, 48 A.F.T.R. (P-H) 680 (1955).

Congress did not intend that attempts to evade tax would necessarily merge in offense of failing to pay tax; that such separateness was intended is made clear not only by language of statute but also by fact that provisions were included in Internal Revenue Code as separate actions. Reynolds v. United States, 1961-1 U.S. Tax Cas. (CCH) P 15337, 61-1 U.S. Tax Cas. (CCH) ¶ 5337, 288 F.2d 78, 7 A.F.T.R.2d (RIA) 1911, 1961-1 U.S. Tax Cas. (CCH) ¶ 15337, 61-1 U.S. Tax Cas. (CCH) P15337, 1961 U.S. App. LEXIS 5041 (5th Cir.), cert. denied, 368 U.S. 883, 82 S. Ct. 127, 7 L. Ed. 2d 83, 1961 U.S. LEXIS 394 (1961).

Word “willfully” has same meaning in 26 USCS § 7206(1) and § 7201United States v. Bender, 1979-2 U.S. Tax Cas. (CCH) P 9656, 79-2 U.S. Tax Cas. (CCH) ¶ 656, 606 F.2d 897, 44 A.F.T.R.2d (RIA) 6028, 1979-2 U.S. Tax Cas. (CCH) ¶ 9656, 79-2 U.S. Tax Cas. (CCH) P9656, 1979 U.S. App. LEXIS 11069 (9th Cir. 1979).

26 USCS § 7201 is legal basis for prosecution of income evasions by means of filing false income tax returns; it overlaps with § 7207 and in case of conflict, § 7201 prevails. United States v. Adonis, 1956-2 U.S. Tax Cas. (CCH) P 9992, 56-2 U.S. Tax Cas. (CCH) ¶ 992, 146 F. Supp. 56, 50 A.F.T.R. (P-H) 869, 1956-2 U.S. Tax Cas. (CCH) ¶ 9992, 56-2 U.S. Tax Cas. (CCH) P9992, 1956 U.S. Dist. LEXIS 2376 (D.N.J. 1956).

Penalties for Tax Fraud in Las Vegas

Tax fraud can result in a mind-boggling 3-year federal prison sentence along with an extensive fine of up to $250,000. Tax evasion is even more severe; it could lead to 5 years of imprisonment and the same hefty penalty. Businesses that fail to comply with taxation laws may face double these repercussions. That equates to 6 or 10 years behind bars plus twice as much money is required as damages.

If you have been accused of committing a tax crime in Nevada, it is critical to obtain the help of an experienced Las Vegas tax evasion defense attorney immediately. The legal team at Spartacus Criminal Defense Lawyers has a proven history of victory when representing clients who are facing severe accusations of white-collar crimes in Las Vegas. We can use every one of our resources to assess your case and fight for justice on your behalf.

Don’t wait any longer, enlist our services to guarantee that all aspects are taken into account during this rough patch. Our mission is to achieve the best conceivable result for your situation, which can include getting accusatory charges reduced or even dropped completely. Depending on the specific circumstances and information regarding your case, it could also involve negotiating with state or federal prosecutors. With a federal criminal defense lawyer by your side, you can rest assured knowing we’ll work hard every step of the way in order to reach a favorable outcome for you.

NRS 205.377 Multiple Transactions Involving Fraud or Deceit in Course of Enterprise or Occupation; Penalty

1. A person shall not, in the course of an enterprise or occupation, knowingly and with the intent to defraud, engage in an act, practice or course of business or employ a device, scheme or artifice which operates or would operate as a fraud or deceit upon a person by means of a false representation or omission of a material fact that:

(a) The person knows to be false or omitted;

(b) The person intends another to rely on; and

(c) Results in a loss to any person who relied on the false representation or omission,

in at least two transactions that have the same or similar pattern, intents, results, accomplices, victims or methods of commission, or are otherwise interrelated by distinguishing characteristics and are not isolated incidents within 4 years and in which the aggregate loss or intended loss is more than $250.

2. Each act which violates subsection 1 constitutes a separate offense.

3. A person who violates subsection 1 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 20 years, and may be further punished by a fine of not more than $10,000.

4. In addition to any other penalty, the court shall order a person who violates subsection 1 to pay restitution.

5. A violation of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

6. As used in this section, “enterprise” has the meaning ascribed to it in NRS 207.380.

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Frequently Asked Questions

What Qualifies As Tax Evasion?

When attempting to determine if the act of nonpayment was intentional, numerous considerations are taken into account. Foremost among these is evaluating a taxpayer’s financial status in order to ascertain whether or not the failure to pay had been from fraudulence or concealing reportable income. Additionally, an individual may be deemed responsible for fraudulent disbursement when they have deliberately sought out ways to associate their assets with another person rather than themselves.

Fraudulent behavior like reporting income under an invented name and Social Security Number (SSN) aren’t just identity theft — these are also forms of concealing revenue. If a person is paid for goods or services rendered in cash but fails to report them correctly when filing their taxes, this could be seen as avoiding proper tax recording methods. In such cases, individuals can face consequences from the IRS.

What’s The Difference Between Tax Evasion vs. Tax Avoidance?

Steer away from tax evasion and instead, embrace the legal process of tax avoidance to reduce your obligations as a taxpayer. You may opt for charitable giving to an eligible entity or invest in a tax-deferred initiative such as an individual retirement account (IRA). With IRA contributions, you don’t have to worry about taxes until funds are withdrawn along with any associated interest payments.

Is Tax Evasion A Federal Crime?

The consequences of being found guilty of tax fraud can be drastic and long-lasting, far more than one might expect. In an ideal world, you’d never have to ask the question: is tax fraud a federal crime? The justice system swiftly punishes those convicted with some of the most severe penalties that exist in law; felony convictions will remain on your criminal record for years into the future, which could limit your prospects for employment or company ownership when all is said and done.

According to Section 7201 of the US Internal Revenue Code, tax evasion is classified as a federal crime. This section specifies two offenses that may cause an individual or organization to be held accountable for committing this egregious crime; primarily, any deliberate attempt made in order to avoid paying taxes will be prosecuted under the law. If a person attempts to deceive the Internal Revenue Service by transferring or holding assets in another’s name, this is an example of willful evasion. Additionally, any attempt to avoid paying taxes due is deemed a federal offense and can result in severe criminal repercussions. It is critical for taxpayers to observe the regulations outlined by their local tax agency closely or else risk potential indictment for intending to bypass payment of their taxation responsibility.

What Is The Average Jail Time For Tax Evasion?

In order to comprehend how one may be penalized for tax fraud, it is important to understand the sentencing range that has been provided in the federal guidelines. Consequently, if you’re wondering, how long can you go to jail for tax evasion? This largely depends on these regulations. The jail sentence for tax fraud or evasion is determined by a numerical system that considers both the seriousness of the offense and any prior criminal history associated with the defendant. In general, most convicts can anticipate spending an average of 3 to 5 years in prison; however, this length may vary depending on particular details surrounding their case.

Contact Our Las Vegas Tax Evasion Defense Attorney Today

Have you been charged with a tax offense or accused of committing fraud? Reach out to Spartacus Criminal Defense Lawyers today for experienced legal counsel. Our Las Vegas tax evasion defense attorney is committed to protecting clients from the severe implications of violating taxation laws. From IRS penalty abatement and IRS reconsideration hearings to negotiating more lenient sentences in court and securing favorable results, our dedicated criminal defense team is ready to fight on your behalf. With years of experience handling hundreds of similar cases, we can help get you the best outcome possible.

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