Tax Evasion in El Dorado County, 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 El Dorado County, 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 El Dorado County, 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 El Dorado County can range anywhere from small fines to huge fines, along with prison sentences of several years.
Normally, a first offense of tax evasion, if the amount of tax evaded is relatively small, will not result in jail time or massive fines. This is especially the case if the government has trouble proving that the failure to pay taxes was the result of purposeful evasion, as opposed to an honest error in accounting.
But if the government is able to definitively establish that a defendant in El Dorado County, 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 El Dorado County, California Tax Evasion Lawyer Can Help
A El Dorado County, 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.
However, if you're truly accused of tax evasion, you will need a El Dorado County, California tax attorney more than ever. If you are, in fact, innocent, a tax attorney can give you the best possible chance of being found not guilty.