If you find yourself facing possible criminal tax charges, you will almost definitely need to seek help from criminal tax attorneys who have a thorough understanding of tax law and can review the particular details of your case to see what can be done to help you. Tax crimes are federal crimes that can carry heavy financial penalties, jail time and other negative consequences. We'll look at some possible strategies to take in addressing your criminal tax charges and walk through the process so you know what to expect and what you can do to get the best possible outcome.
What Are Some Possible Defenses Against Criminal Tax Charges?
If you are defending against criminal tax charges, you really need someone on your side who has a thorough understanding of tax law and the specifics of your case. Once you're able to retain experienced criminal tax defense attorneys, here are some common defense strategies they might use to help you:
1. Lack of Willfulness
Proving that you did not willfully violate tax laws is a key defense strategy. Tax crimes often require proof that you acted with intentional wrongdoing. If you can show that the error was due to negligence, mistake, or lack of understanding, this demonstrate that you did not willingly violate tax laws.
2. Reliance on Professional Advice
If you relied on the advice of a tax professional (such as an accountant or attorney), this can be a strong defense. You must show that you provided all relevant information to the professional and followed their advice in good faith.
3. Insufficient Evidence
Challenging the sufficiency and validity of the evidence against you presented by the IRS is a fundamental defense strategy. This can involve questioning the accuracy of financial records, the credibility of witnesses, or the methods used by investigators in your specific case.
4. Statute of Limitations
Tax crimes are subject to statutes of limitations, which means charges must be brought against you within a certain period after the alleged offense. For most federal tax crimes, the statute of limitations is six years. If the alleged crime occurred outside this period, the charges against you might be dismissed.
5. Procedural Defenses
If the IRS or law enforcement violated your rights during the investigation (e.g., illegal search and seizure, failure to provide Miranda warnings), you can argue to hold back evidence the IRS got this way.
6. Lack of Evidence of Income
In cases where the IRS claims unreported income, you might be able to argue that the income was not actually received or that it was non-taxable (such as gifts or loans).
7. Entrapment
If law enforcement agents somehow got you to commit a tax crime that you otherwise would not have committed, entrapment can be a viable defense. This requires proving that you were not predisposed to commit the crime without government intervention.
8. Mental or Physical Incapacity
Demonstrating that you were suffering from a mental or physical condition that impaired your ability to form the necessary criminal intent can be a defense. This might include severe mental illness, cognitive impairments, or other conditions that affected your decision-making abilities.
9. Voluntary Disclosure
If you voluntarily disclosed the tax issue to the IRS before any investigation was initiated, this can be a help your case. The IRS has voluntary disclosure programs that can help taxpayers correct non-compliance and potentially avoid criminal prosecution.
10. Good Faith Belief
Arguing that you had a good faith belief that your tax reporting was accurate or that your interpretation of tax laws was reasonable, even if incorrect, can be a defense. This often overlaps with reliance on professional advice but can also stand alone.
What Can You Do Now to Help Your Case?
When preparing to defend yourself against criminal tax charges, there are some things you can do to help you have a better outcome in your case.
- Hire a Competent Tax Attorney: Specialized knowledge in tax law is crucial for mounting an effective defense. Make sure your tax attorney is experienced in dealing with the IRS and has a good track record.
- Gather Documentation: Collect all relevant financial records, correspondence, and other documentation that supports your case.
- Witnesses: Identify and prepare witnesses who can give positive testimony about your character, business practices, and reliance on professional advice.
- Expert Testimony: Consider hiring experts in tax law or accounting to provide testimony that supports your arguments.
- Negotiations: Engage in negotiations with prosecutors, which might lead to reduced charges or plea agreements under favorable terms.
Conclusion
Each case is unique, and the best defense strategy depends on the specific facts and circumstances. A comprehensive approach, combining multiple defense strategies, is often necessary to achieve the best outcome.
