Tax Evasion Lawyers in Watertown

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

Normally, the strategy employed by tax evaders in Watertown, 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 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 Watertown, South Dakota

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

Punishments for evading one's taxes in Watertown 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 purposeful evasion, as opposed to an honest error in accounting.

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

Attorneys in Watertown, South Dakota 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 Watertown, South Dakota tax lawyer immediately. If you are innocent, a tax attorney will make sure you have the best chance possible at being acquitted.