Tax Evasion Lawyers in Cottage Grove
Within Minnesota "tax evasion" is the crime of failing to pay the taxes that they owe.
There are a few strategies that tax evaders use in Cottage Grove, Minnesota. 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.
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 utilizing 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 Cottage Grove, Minnesota
Both federal law and the law of Minnesota treat tax evasion as a serious criminal offense.
In Cottage Grove, tax evasion can result in anything from a comparatively 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.
However, the punishments for tax evasion, particularly first offenses involving relatively small amounts of money, is not usually so severe, particularly when it looks like the failure to pay taxes was the result of an honest mistake, rather than deliberate fraud.
On the other hand, if the prosecution can prove that a Cottage Grove, Minnesota 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 Cottage Grove, Minnesota Tax Evasion Lawyer Can Help
A tax attorney in Cottage Grove, Minnesota can ensure that you meet your tax liabilities, which will make an audit, or charge of tax evasion, less likely. Sometimes, it's challenging to determine exactly what one's tax liability is, and a tax attorney can help.
Of course, if you've actually been accused of tax evasion, you should contact a Cottage Grove, Minnesota tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.