Tax Evasion Lawyers in Covington

In Tennessee, "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 Covington, Tennessee 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 not be confused with "tax avoidance." Tax evasion is the act of purposely attempting to get out of one's tax liability through prohibited means. Tax avoidance is perfectly legal, and involves utilizing legal strategies (such as taking advantage of deductions and tax credits) to reduce one's legal tax liability. However, someone engaging in tax avoidance typically intends to pay whatever they end up owing, even as they try to reduce the amount they owe.

Penalties for Tax Evasion in Covington, Tennessee

Under the laws of Tennessee, as well as federal law, tax evasion is a very egregious criminal offense.

Punishments for evading one's taxes in Covington range from paying back taxes plus interest (a relatively mild punishment) all the way up to years in prison, and penalties in the hundreds of thousands of dollars.

However, the punishments for tax evasion, particularly first offenses involving relatively small amounts of money, is not typically so severe, particularly when it looks like the failure to pay taxes was the result of an honest mistake, rather than deliberate fraud.

But if the government is able to definitively establish that a defendant in Covington, Tennessee intentionally engaged in fraud to get out of paying taxes, a tax court is very unlikely to show any leniency, and may well sentence the defendant to prison time.

A Covington, Tennessee Tax Evasion Lawyer Can Help

A tax attorney in Covington, Tennessee 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 precisely what one's tax liability is, and a tax attorney can help.

If you find yourself truly accused of tax evasion, and are innocent, you should hire a Covington, Tennessee attorney with expertise practicing tax law, as soon as possible. Your tax attorney can help you defend yourself against the charges, ensuring that you have a good chance at being acquitted.