Tax Evasion Lawyers in Ellsworth

In Maine "tax evasion" is the crime of failing to pay the taxes that they owe.

Most frequently, people who try to evade their taxes in Ellsworth, Maine will take steps to harbor their assets and income, or transferring their property to other legal entities in a fraudulent manner.

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 Ellsworth, Maine

Under federal and state law, including the laws of Maine, tax evasion is a very serious crime.

Punishments for evading one's taxes in Ellsworth range from paying back taxes plus interest (a relatively mild punishment) all the way up to years in prison, and fines in the hundreds of thousands of dollars.

Normally, a first offense of tax evasion, if the amount of tax evaded is relatively small, will not result in jail time or massive fines. This is especially the case if the government has trouble proving that the failure to pay taxes was the result of deliberate evasion, as opposed to an honest error in accounting.

However, if the relevant tax authorities are able to demonstrate that a taxpayer in Ellsworth, Maine committed deliberate fraud, in order to evade their legal duty to pay taxes, a tax court is probably going to impose a more severe penalty, which may include jail time, and large financial penalties.

A Ellsworth, Maine Tax Evasion Lawyer Can Help

Attorneys in Ellsworth, Maine who practice tax law can help you stay in compliance with your tax obligations. This is a good way to ensure that you won't be suspected of tax evasion in the first place.

Of course, if you've truly been accused of tax evasion, you should hire an Ellsworth, Maine tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.