Tax Evasion in Malvern, Arkansas
"Tax Evasion" refers to the crime of knowingly failing to pay one's taxes, as required by Arkansas law.
One of the most common prevalent tactics of tax evaders in Malvern, Arkansas 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.
It's important not to confuse "tax avoidance" and "tax evasion." They are two different things, but some people mistakenly use them interchangeably. Tax avoidance involves using legal methods, such as tax deductions and exemptions, in a strategic manner, for the purpose of reducing one's tax liability. Tax avoidance is perfectly legal. Tax evasion involves fraud, and a deliberate attempt to avoid meeting one's legal obligations to pay taxes.
Penalties for Tax Evasion in Malvern, Arkansas
Under federal and state law, including the laws of Arkansas, tax evasion is a very serious crime.
The penalties for tax evasion in Malvern can range anywhere from small fines to huge fines, along with prison sentences of several years.
In most cases, particularly when the amount of taxes evaded is small, and it's a first offense, the punishment will typically be fairly mild. It will typically result in an order to pay the taxes the defendant owes, plus a small financial penalty. This is especially likely when it cannot be proven that the failure to pay taxes was deliberate.
However, if it can be clearly proven that a person or corporation in Malvern, Arkansas knowingly attempted to harbor income or assets for the purpose of getting out of taxes, a court will probably throw the book at them, so to speak. This can mean jail sentences measured in years, and fines in the six or seven figures.
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A Malvern, Arkansas Tax Evasion Lawyer Can Help
A Malvern, Arkansas attorney who specializes in tax law can help ensure that you are in compliance with all applicable tax laws, making an accusation of tax evasion less likely.
In the unfortunate event that you're truly charged with tax evasion, it's critical that you hire a knowledgeable tax attorney in Malvern, Arkansas. 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.