Tax Evasion in Folsom, California
"Tax Evasion" refers to the crime of willfully failing to pay one's taxes, as required by California law.
Normally, the strategy employed by tax evaders in Folsom, 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 willfully 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 Folsom, 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 Folsom can range anywhere from small fines to huge fines, along with prison sentences of several years.
In the majority of tax evasion cases, however, the punishments are not so severe. This is especially likely in first offenses, when the amount of money involved is fairly small. Minor punishments for tax evasion normally mean a small fine, on top of an order to pay whatever taxes the taxpayer owes. A minor punishment is most likely when the government has trouble proving that fraud was involved, as opposed to an honest accounting error.
On the other hand, if the prosecution can establish that a Folsom, California taxpayer engaged in fraud, and knowingly failed to pay their taxes, a tax court will probably impose the most severe punishment that's permitted by law. This can easily involve jail time.
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A Folsom, California Tax Evasion Lawyer Can Help
A Folsom, 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 important that you hire a knowledgeable tax attorney in Folsom, 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.