Tax Evasion Lawyers in Madison

In South Dakota, "tax evasion" is a crime that involves a deliberate failure to pay the taxes that the taxpayer legally owes.

Typically, the strategy employed by tax evaders in Madison, South Dakota is to try and make it look like they have less taxable income than they actually do. This can be done by failing to report income, concealing it, or fraudulently transferring property.

"Tax evasion" should be distinguished from "tax avoidance." Tax evasion is the illegal 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 Madison, South Dakota

Under federal and state law, including the laws of South Dakota, tax evasion is a very severe crime.

In Madison, 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.

Typically, 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 purposeful evasion, as opposed to an honest error in accounting.

But if the government is able to definitively prove that a defendant in Madison, South Dakota 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 Madison, South Dakota Tax Evasion Lawyer Can Help

A Madison, South Dakota attorney who specializes in tax law can help ensure that you are in compliance with all applicable tax laws, making an accusation of tax evasion less likely.

However, if you're actually accused of tax evasion, you will need a Madison, South Dakota tax attorney more than ever. If you are, in fact, innocent, a tax attorney can give you the best possible chance of being found not guilty.