Tax Evasion in La Palma, 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 La Palma, 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 La Palma, California
Under federal and state law, including the laws of California, tax evasion is a very severe crime.
The penalties for tax evasion in La Palma can range anywhere from small fines to huge fines, along with prison sentences of several years.
In most cases, particularly when the amount of taxes evaded is small, and it's a first offense, the punishment will typically be fairly mild. It will typically result in an order to pay the taxes the defendant owes, plus a small financial penalty. This is especially likely when it cannot be proven that the failure to pay taxes was purposeful.
However, if it can be clearly proven that a person or corporation in La Palma, California willfully attempted to harbor income or assets for the purpose of getting out of taxes, a court will probably throw the book at them, so to speak. This can mean jail sentences measured in years, and fines in the six or seven figures.
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A La Palma, California Tax Evasion Lawyer Can Help
A La Palma, 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 La Palma, 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.