Tax Evasion Lawyers in Davenport
"Tax Evasion" refers to the crime of willfully failing to pay one's taxes, as required by Iowa law.
There are a few strategies that tax evaders use in Davenport, Iowa. One of the most common tactics is to make it appear that the taxpayer has less taxable income than they actually do. There are a wide number of ways to conceal income for the purpose of evading one's tax liability, but all of them are illegal.
"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 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 Davenport, Iowa
The federal government and the laws of Iowa impose grave penalties for tax evasion - treating it as an extremely serious crime.
Tax evaders in Davenport can be punished by multi-year prison sentences, as well as six-figure fines. Of course, there is a wide range of penalties available, with the ones just mentioned representing the most severe options available.
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 Davenport, Iowa 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.
A Davenport, Iowa Tax Evasion Lawyer Can Help
An attorney in Davenport, Iowa specializing in tax law can help you adhere with all the tax laws that apply to you, which makes it very unlikely that you'll ever be accused of tax evasion in the first place.
Of course, if you've actually been accused of tax evasion, you should contact a Davenport, Iowa tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.