Tax Evasion in Prescott, Arizona
"Tax Evasion" refers to the crime of willfully failing to pay one's taxes, as required by Arizona law.
One of the most common frequent tactics of tax evaders in Prescott, 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 acquainted with the term "tax avoidance." It is necessary 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, Arizona
The laws of the federal government, as well as Arizona take tax evasion extremely seriously, making it a crime.
In Prescott, tax evasion can result in anything from a comparatively small fine, and a court order to pay any back taxes as well as interest, all the way up to financial penalties in the hundreds of thousands of dollars, as well as jail time.
However, the punishments for tax evasion, particularly first offenses involving relatively small amounts of money, is not normally so severe, particularly when it looks like the failure to pay taxes was the result of an honest mistake, rather than deliberate fraud.
On the other hand, if the prosecution can show that a Prescott, Arizona taxpayer engaged in fraud, and knowingly failed to pay their taxes, a tax court will probably impose the most grave punishment that's authorized by law. This can easily involve jail time.
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A Prescott, Arizona Tax Evasion Lawyer Can Help
A tax attorney in Prescott, Arizona can ensure that you meet your tax liabilities, which will make an audit, or charge of tax evasion, less likely. Sometimes, it's challenging 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 important that you hire a reliable tax attorney in Prescott, 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.