Tax Evasion in Auburn, Alabama
"Tax Evasion" refers to the crime of purposely failing to pay one's taxes, as required by Alabama law.
One of the most common common tactics of tax evaders in Auburn, Alabama is to attempt to make it appear to an outside observer that their tax liability is lower than it actually is, such as by concealing income, fraudulently transferring property, and others.
You should not confuse "tax evasion" with "tax avoidance." Tax evasion is illegal, and involves deliberately failing to pay one's taxes which they lawfully owe. Tax avoidance, on the other hand, is legal, and involves using legal strategies to lower one's legal tax liability. For example, strategically using deductions and tax credits to lower the amount of money you are legally obliged to pay, is an example of tax avoidance, assuming you actually pay your tax bill, whatever it ends up being.
Penalties for Tax Evasion in Auburn, Alabama
The laws of the federal government, as well as Alabama take tax evasion very seriously, making it a crime.
In Auburn, the punishments for tax evasion can range from a court order to pay back taxes, plus a small fine, and range all the way up to fines in the tens (or hundreds) of thousands of dollars, and imprisonment.
Typically, a first offense of tax evasion, if the amount of tax evaded is relatively small, will not result in jail time or massive fines. This is especially the case if the government has trouble proving that the failure to pay taxes was the result of purposeful evasion, as opposed to an honest error in accounting.
But if the government is able to definitively prove that a defendant in Auburn, Alabama intentionally engaged in fraud to get out of paying taxes, a tax court is highly unlikely to show any leniency, and may well sentence the defendant to prison time.
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A Auburn, Alabama Tax Evasion Lawyer Can Help
Attorneys in Auburn, Alabama who practice tax law can help you stay in compliance with your tax obligations. This is a good way to ensure that you won't be suspected of tax evasion in the first place.
In the unfortunate event that you're actually charged with tax evasion, it's crucial that you hire a qualified tax attorney in Auburn, Alabama. If you are actually innocent, your tax attorney can help make sure that you have the best chance you can of being found not guilty.