Tax Evasion in Lincoln, Alabama
"Tax Evasion" refers to the crime of knowingly failing to pay one's taxes, as required by Alabama law.
One of the most common prevalent tactics of tax evaders in Lincoln, Alabama is to attempt to make it appear to an outside observer that their tax liability is lower than it truly 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 Lincoln, Alabama
Under federal and state law, including the laws of Alabama, tax evasion is a very severe crime.
Punishments for evading one's taxes in Lincoln range from paying back taxes plus interest (a relatively mild punishment) all the way up to years in prison, and fines in the hundreds of thousands of dollars.
Most often, tax evasion - if it's a first offense and the tax liability is small - will not be cause for huge fines or imprisonment. This is especially true if the prosecution can't definitively prove that that the defendant's failure to pay taxes was purposeful, as opposed to an honest mistake.
However, if the relevant tax authorities are able to demonstrate that a taxpayer in Lincoln, Alabama committed purposeful fraud, in order to evade their legal duty to pay taxes, a tax court is probably going to impose a more severe penalty, which may include jail time, and large financial penalties.
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A Lincoln, Alabama Tax Evasion Lawyer Can Help
Attorneys in Lincoln, 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.
However, if you're truly accused of tax evasion, you will need a Lincoln, Alabama tax attorney more than ever. If you are, in fact, innocent, a tax attorney can give you the best possible chance of being found not guilty.