Tax Evasion in Prescott, Arkansas
"Tax Evasion" refers to the crime of intentionally failing to pay one's taxes, as required by Arkansas law.
One of the most common prevalent tactics of tax evaders in Prescott, 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.
You may also be acquainted with the term "tax avoidance." It is essential that you don't confuse this with "tax evasion." Tax avoidance is perfectly legal, and is probably something that every taxpayer does whenever they file, whether they know it or not. It involves employing legal methods to make one's tax liability as small as possible, taking advantages of deductions and other tax breaks.
Penalties for Tax Evasion in Prescott, Arkansas
Under the laws of Arkansas, as well as federal law, tax evasion is a very egregious criminal offense.
The penalties for tax evasion in Prescott can range anywhere from small penalties to huge penalties, along with prison sentences of several years.
In most cases, especially 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 intentional.
But if the government is able to definitively establish that a defendant in Prescott, Arkansas intentionally engaged in fraud to get out of paying taxes, a tax court is very unlikely to show any leniency, and may well sentence the defendant to prison time.
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A Prescott, Arkansas Tax Evasion Lawyer Can Help
A Prescott, Arkansas attorney who concentrates in tax law can help ensure that you are in conformity with all applicable tax laws, making an accusation of tax evasion less likely.
However, if you're truly accused of tax evasion, you will need a Prescott, Arkansas 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.