Las Vegas Federal Tax Evasion Defense Attorney
Tax evasion is one of the most commonly prosecuted federal crimes in the United States, involving the intentional avoidance of paying taxes owed to the government. Charged under 26 U.S.C. § 7201, tax evasion can take many forms, including underreporting income, inflating deductions, or hiding assets in offshore accounts. The Internal Revenue Service (IRS) investigates these cases aggressively, and a conviction can result in severe penalties, including significant fines and prison time.
At Hofland & Tomsheck, attorney Josh Tomsheck is a Nationally Board Certified Criminal Lawyer with extensive experience defending individuals against federal tax evasion charges. Whether you're facing accusations of tax evasion, fraud, or other tax-related crimes, Josh Tomsheck has the knowledge and experience to protect your rights and build a strong defense.
What Is Tax Evasion?
Tax evasion, as defined under 26 U.S.C. § 7201, involves the willful attempt to evade or defeat any federal tax imposed by the IRS. To secure a conviction for tax evasion, federal prosecutors must prove the following elements:
Tax Deficiency: There must be an existing tax deficiency, meaning that the defendant owes taxes that were not properly paid or reported.
Affirmative Act: The defendant must have committed an affirmative act to evade the tax. This can include underreporting income, falsifying deductions, or using offshore accounts to conceal income.
Willfulness: The defendant must have willfully attempted to evade taxes, meaning that they acted with knowledge of the legal obligation to pay taxes and intentionally sought to avoid it.
Tax evasion can occur in both individual and corporate settings and is often charged alongside other financial crimes, such as fraud (18 U.S.C. § 1343) or money laundering (18 U.S.C. § 1956).
Case Law and Legal Precedents for Tax Evasion
Several key cases have shaped the way tax evasion is prosecuted under federal law. In Spies v. United States, 317 U.S. 492 (1943), the Supreme Court clarified that mere failure to file a tax return or pay taxes is not sufficient to constitute tax evasion. Instead, there must be an affirmative act of evasion, such as keeping a double set of books, making false statements, or concealing assets. This ruling established the requirement of an overt act in tax evasion cases.
In Cheek v. United States, 498 U.S. 192 (1991), the Supreme Court ruled that a defendant's belief that they were not required to pay taxes, even if unreasonable, could be a defense to a charge of tax evasion if the belief was sincerely held. However, this defense is limited, as ignorance of the law is generally not a defense, and the belief must be genuinely held in good faith.
Penalties for Tax Evasion
Tax evasion is a felony offense that carries harsh penalties, especially in cases involving significant amounts of unpaid taxes or elaborate schemes to conceal income. The penalties for tax evasion under 26 U.S.C. § 7201 include:
Fines: A conviction for tax evasion can result in fines of up to $100,000 for individuals and $500,000 for corporations. In addition to fines, the defendant may be ordered to pay back taxes, interest, and penalties to the IRS.
Imprisonment: The statutory maximum penalty for tax evasion is up to five years in federal prison. The length of the sentence depends on the amount of taxes evaded, the defendant's role in the scheme, and any aggravating factors.
Restitution: Defendants convicted of tax evasion are often required to pay restitution to the government, which may include the full amount of unpaid taxes, interest, and penalties.
The U.S. Sentencing Guidelines provide an advisory range for sentencing in tax evasion cases, taking into account factors such as the total amount of unpaid taxes, the complexity of the evasion scheme, and the defendant's criminal history. In large-scale tax evasion cases involving millions of dollars, sentences may be significantly enhanced.
Federal Investigations and Tax Evasion Charges
Tax evasion cases are primarily investigated by the Criminal Investigation Division (CID) of the Internal Revenue Service (IRS), which is responsible for identifying and investigating individuals and businesses suspected of tax fraud and evasion. The IRS may collaborate with other federal agencies, such as the Federal Bureau of Investigation (FBI) or the Department of Justice (DOJ), depending on the scope and complexity of the case.
IRS investigations can take years and often involve a thorough review of financial records, bank statements, offshore accounts, and tax filings. The IRS also uses tools such as subpoenas, search warrants, and forensic accounting to gather evidence of tax evasion.
If you are under investigation for tax evasion, it is essential to seek legal representation as early as possible. The IRS and federal prosecutors are aggressive in pursuing these cases, and early intervention by an experienced attorney can help protect your rights and mitigate the impact of the investigation.
Defenses Against Tax Evasion Charges
At Hofland & Tomsheck, we understand the complexities of tax evasion cases and work to build a defense that challenges the government's evidence and raises doubt about the prosecution's case. Common defenses against tax evasion charges include:
Lack of Willfulness: One of the key elements of tax evasion is willfulness. If the defendant did not willfully attempt to evade taxes—for example, if the failure to pay taxes was due to a mistake or misunderstanding—this can serve as a defense.
No Affirmative Act: Tax evasion requires an affirmative act of evasion, such as falsifying records or concealing income. If the prosecution cannot prove that the defendant took specific steps to evade taxes, the charges may not hold.
Good Faith Belief: As established in Cheek v. United States, if the defendant sincerely believed they were not required to pay taxes, this can serve as a defense. However, this defense is limited and requires proof that the belief was genuinely held in good faith.
Insufficient Evidence: Tax evasion cases often rely on complex financial records and documentation. By challenging the validity of the evidence, we can raise doubts about the accuracy of the government's case.
Sentencing Guidelines for Tax Evasion
Federal sentencing for tax evasion is determined by the U.S. Sentencing Guidelines, which outline the advisory sentencing range based on several factors:
Amount of unpaid taxes: Larger amounts of unpaid taxes generally result in harsher penalties.
Sophistication of the evasion scheme: Defendants who use complex schemes to evade taxes, such as offshore accounts or shell companies, may face enhanced penalties.
Defendant's role: Individuals who played a leading role in the evasion scheme, such as corporate executives or accountants, may receive harsher sentences than those who had a minor role.
Federal judges consider the guidelines when determining a sentence but have discretion to impose sentences above or below the advisory range based on the specifics of the case.
Why Choose Josh Tomsheck for Your Tax Evasion Defense
Tax evasion cases are complex, requiring an attorney with a deep understanding of federal tax law and the investigative tactics used by the IRS. Josh Tomsheck is a Nationally Board Certified Criminal Lawyer with extensive experience defending clients against tax evasion and other financial crimes. As a former prosecutor, Josh has insider knowledge of how the government builds its case, allowing him to develop strategies to challenge the prosecution's evidence and negotiate favorable outcomes for his clients.
At Hofland & Tomsheck, we take a personalized approach to every case, working closely with our clients to understand their situation and build a defense strategy tailored to their specific needs.
Schedule Your Free, Confidential Consultation Today
If you are facing federal tax evasion charges or are under investigation by the IRS, contact Hofland & Tomsheck today to schedule a free, confidential consultation with Josh Tomsheck. We offer flexible consultation options, including in-person meetings, phone consultations, and Zoom sessions.
Call us at (702) 895-6760, or visit our office at 228 S. 4th Street, First Floor, Las Vegas, NV 89101. Let us help you protect your rights and build a strong defense against federal tax evasion charges.
