Tax Evasion Lawyers in Red Oak

In Texas, "tax evasion" is a crime that involves a purposeful failure to pay the taxes that the taxpayer legally owes.

There are a few strategies that tax evaders use in Red Oak, Texas. 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.

"Tax evasion" should not be confused with "tax avoidance." Tax evasion is the act of willfully attempting to get out of one's tax liability through unlawful means. Tax avoidance is perfectly legal, and involves using 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 Red Oak, Texas

The federal government and the laws of Texas impose severe penalties for tax evasion - treating it as an extremely serious crime.

Tax evaders in Red Oak can be punished by multi-year prison sentences, as well as six-figure fines. Of course, there is a wide range of punishments available, with the ones just mentioned representing the most severe options available.

Usually, 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.

However, if the relevant tax authorities are able to demonstrate that a taxpayer in Red Oak, Texas 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 Red Oak, Texas Tax Evasion Lawyer Can Help

A Red Oak, Texas 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 really accused of tax evasion, you will need a Red Oak, Texas 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.