Tax Evasion in Alabaster, Alabama
"Tax Evasion" refers to the crime of willfully failing to pay one's taxes, as required by Alabama law.
One of the most common common tactics of tax evaders in Alabaster, 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 Alabaster, Alabama
The laws of the federal government, as well as Alabama take tax evasion very seriously, making it a crime.
In Alabaster, tax evasion can result in anything from a relatively small fine, and a court order to pay any back taxes as well as interest, all the way up to financial penalties in the hundreds of thousands of dollars, as well as jail time.
In the majority of tax evasion cases, however, the punishments are not so severe. This is especially likely in first offenses, when the amount of money involved is fairly small. Minor punishments for tax evasion typically mean a small fine, on top of an order to pay whatever taxes the taxpayer owes. A minor punishment is most likely when the government has trouble proving that fraud was involved, as opposed to an honest accounting error.
On the other hand, if the prosecution can prove that a Alabaster, Alabama taxpayer engaged in fraud, and knowingly failed to pay their taxes, a tax court will probably impose the most severe punishment that's allowed by law. This can easily involve jail time.
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A Alabaster, Alabama Tax Evasion Lawyer Can Help
A tax attorney in Alabaster, Alabama can ensure that you meet your tax liabilities, which will make an audit, or charge of tax evasion, less likely. Sometimes, it's difficult to determine exactly what one's tax liability is, and a tax attorney can help.
Of course, if you've actually been accused of tax evasion, you should contact a Alabaster, Alabama tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.