Tax Evasion Lawyers in Pella
"Tax Evasion" refers to the crime of knowingly failing to pay one's taxes, as required by Iowa law.
There are a few strategies that tax evaders use in Pella, Iowa. One of the most frequent tactics is to make it appear that the taxpayer has less taxable income than they actually do. There are a wide variety of ways to hide income for the purpose of evading one's tax liability, but all of them are illegal.
You should not confuse "tax evasion" with "tax avoidance." Tax evasion is illegal, and involves deliberately failing to pay one's taxes which they lawfully owe. Tax avoidance, on the other hand, is legal, and involves using legal strategies to lower one's legal tax liability. For example, strategically using deductions and tax credits to lower the amount of money you are legally obliged to pay, is an example of tax avoidance, assuming you actually pay your tax bill, whatever it ends up being.
Penalties for Tax Evasion in Pella, Iowa
Both federal law and the law of Iowa treat tax evasion as a severe criminal offense.
In Pella, tax evasion can result in anything from a relatively small fine, and a court order to pay any back taxes as well as interest, all the way up to financial penalties in the hundreds of thousands of dollars, as well as jail time.
In most cases, particularly when the amount of taxes evaded is small, and it's a first offense, the punishment will normally be fairly mild. It will normally 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 deliberate.
But if the government is able to definitively show that a defendant in Pella, Iowa 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.
A Pella, Iowa Tax Evasion Lawyer Can Help
A tax attorney in Pella, Iowa can ensure that you meet your tax liabilities, which will make an audit, or charge of tax evasion, less likely. Sometimes, it's difficult to determine clearly what one's tax liability is, and a tax attorney can help.
Of course, if you've really been accused of tax evasion, you should retain a Pella, Iowa tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.