Tax Evasion in Colorado, Arizona
"Tax Evasion" refers to the crime of purposely failing to pay one's taxes, as required by Arizona law.
One of the most common frequent tactics of tax evaders in Colorado, Arizona is to attempt to make it appear to an outside observer that their tax liability is lower than it really is, such as by concealing income, fraudulently transferring property, and others.
You may also be familiar with the term "tax avoidance." It is crucial 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 Colorado, Arizona
The federal government and the laws of Arizona impose severe penalties for tax evasion - treating it as an extremely serious crime.
In Colorado, the punishments for tax evasion can range from a court order to pay back taxes, plus a small fine, and range all the way up to fines in the tens (or hundreds) of thousands of dollars, and imprisonment.
In most cases, particularly when the amount of taxes evaded is small, and it's a first offense, the punishment will normally be fairly mild. It will normally 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 purposeful.
But if the government is able to definitively show that a defendant in Colorado, Arizona 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 Colorado, Arizona Tax Evasion Lawyer Can Help
A tax attorney in Colorado, Arizona 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 clearly what one's tax liability is, and a tax attorney can help.
In the unfortunate event that you're really charged with tax evasion, it's crucial that you hire a reliable tax attorney in Colorado, Arizona. 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.