Tax Evasion in Desert Hot Springs, California
"Tax Evasion" refers to the crime of purposely failing to pay one's taxes, as required by California law.
Normally, the strategy employed by tax evaders in Desert Hot Springs, California is to try and make it look like they have less taxable income than they actually do. This can be done by failing to report income, concealing it, or fraudulently transferring property.
"Tax evasion" should not be confused with "tax avoidance." Tax evasion is the act of purposely attempting to get out of one's tax liability through prohibited means. Tax avoidance is perfectly legal, and involves using legal strategies (such as taking advantage of deductions and tax credits) to reduce one's legal tax liability. However, someone engaging in tax avoidance typically intends to pay whatever they end up owing, even as they try to reduce the amount they owe.
Penalties for Tax Evasion in Desert Hot Springs, California
The laws of the federal government, as well as California take tax evasion quite seriously, making it a crime.
In Desert Hot Springs, tax evasion can result in anything from a relatively 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, especially first offenses involving relatively small amounts of money, is not typically so severe, especially when it looks like the failure to pay taxes was the result of an honest mistake, rather than deliberate fraud.
But if the government is able to definitively establish that a defendant in Desert Hot Springs, California 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 Desert Hot Springs, California Tax Evasion Lawyer Can Help
A Desert Hot Springs, California attorney who specializes in tax law can help ensure that you are in compliance with all applicable tax laws, making an accusation of tax evasion less likely.
In the unfortunate event that you're truly charged with tax evasion, it's crucial that you hire a knowledgeable tax attorney in Desert Hot Springs, 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.