Tax Evasion Lawyers in Royal Oak
In Michigan "tax evasion" is the crime of failing to pay the taxes that they owe.
There are a few strategies that tax evaders use in Royal Oak, Michigan. One of the most typical 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 harbor income for the purpose of evading one's tax liability, but all of them are illegal.
"Tax evasion" should be distinguished from "tax avoidance." Tax evasion is the prohibited act of trying to hide one's tax liability. Tax avoidance, on the other hand, is perfectly legal, and simply involves using the tax laws strategically, to reduce one's actual tax liability as much as possible.
Penalties for Tax Evasion in Royal Oak, Michigan
The laws of the federal government, as well as Michigan take tax evasion quite seriously, making it a crime.
In Royal Oak, the punishments for tax evasion can range from a court order to pay back taxes, plus a small fine, and range all the way up to fines in the tens (or hundreds) of thousands of dollars, and imprisonment.
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.
However, if the relevant tax authorities are able to demonstrate that a taxpayer in Royal Oak, Michigan 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 Royal Oak, Michigan Tax Evasion Lawyer Can Help
Attorneys in Royal Oak, Michigan 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 a Royal Oak, Michigan tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.