Tax Evasion in Sherwood, Arkansas
"Tax Evasion" refers to the crime of deliberately failing to pay one's taxes, as required by Arkansas law.
One of the most common prevalent tactics of tax evaders in Sherwood, 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 familiar with the term "tax avoidance." It is important 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 Sherwood, Arkansas
Under the laws of Arkansas, as well as federal law, tax evasion is a very serious criminal offense.
Punishments for evading one's taxes in Sherwood 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 deliberate, as opposed to an honest mistake.
But if the government is able to definitively establish that a defendant in Sherwood, Arkansas 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 Sherwood, Arkansas Tax Evasion Lawyer Can Help
Attorneys in Sherwood, Arkansas 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 truly charged with tax evasion, it's imperative that you hire a knowledgeable tax attorney in Sherwood, 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.