Tax Evasion in Arroyo Grande, California
"Tax Evasion" refers to the crime of willfully failing to pay one's taxes, as required by California law.
One of the most common prevalent tactics of tax evaders in Arroyo Grande, California 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 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 Arroyo Grande, California
The laws of the federal government, as well as California take tax evasion quite seriously, making it a crime.
The penalties for tax evasion in Arroyo Grande can range anywhere from small penalties to huge penalties, along with prison sentences of several years.
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 particularly true if the prosecution can't definitively prove that that the defendant's failure to pay taxes was intentional, as opposed to an honest mistake.
On the other hand, if the prosecution can establish that a Arroyo Grande, California taxpayer engaged in fraud, and knowingly failed to pay their taxes, a tax court will probably impose the most grave punishment that's permitted by law. This can easily involve jail time.
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A Arroyo Grande, California Tax Evasion Lawyer Can Help
A tax attorney in Arroyo Grande, California 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 precisely what one's tax liability is, and a tax attorney can help.
In the unfortunate event that you're truly charged with tax evasion, it's important that you hire a knowledgeable tax attorney in Arroyo Grande, California. 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.