Tax Evasion in Elk Grove, California
"Tax Evasion" refers to the crime of deliberately failing to pay one's taxes, as required by California law.
Typically, the strategy employed by tax evaders in Elk Grove, 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 deliberately attempting to get out of one's tax liability through illegal means. Tax avoidance is perfectly legal, and involves utilizing 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 Elk Grove, California
The laws of the federal government, as well as California take tax evasion very seriously, making it a crime.
The penalties for tax evasion in Elk Grove 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 willful, as opposed to an honest mistake.
On the other hand, if the prosecution can prove that a Elk Grove, California taxpayer engaged in fraud, and knowingly failed to pay their taxes, a tax court will probably impose the most grave punishment that's allowed by law. This can easily involve jail time.
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A Elk Grove, California Tax Evasion Lawyer Can Help
A tax attorney in Elk Grove, 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 exactly what one's tax liability is, and a tax attorney can help.
If the government actually charges you with tax evasion, it cannot be stressed enough that you need the assistance of a reputable Elk Grove, California tax attorney. Assuming you're actually innocent, your tax lawyer can help you prepare a defense, and ensure that you have a good chance of being found not guilty. On top of that, they can make getting through such a difficult time much easier.