Tax Evasion Lawyers in Watertown

In 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 Watertown, Minnesota. 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.

It's important not to confuse "tax avoidance" and "tax evasion." They are two different things, but some people mistakenly use them interchangeably. Tax avoidance involves using legal methods, such as tax deductions and exemptions, in a strategic manner, for the purpose of reducing one's tax liability. Tax avoidance is perfectly legal. Tax evasion involves fraud, and a deliberate attempt to avoid meeting one's legal obligations to pay taxes.

Penalties for Tax Evasion in Watertown, Minnesota

Both federal law and the law of Minnesota treat tax evasion as a severe criminal offense.

In Watertown, 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 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 usually 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 Watertown, Minnesota committed purposeful 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 Watertown, Minnesota Tax Evasion Lawyer Can Help

Attorneys in Watertown, Minnesota 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 really been accused of tax evasion, you should retain a Watertown, Minnesota tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.