Tax laws are complex. Even honest mistakes can lead to costly penalties. If prosecutors believe you intentionally avoided paying taxes, you could face serious state or federal criminal charges.
If you’re under investigation or have been charged with tax evasion, you need an experienced criminal defense lawyer on your side.
Herman Law, P.A. defends clients throughout West Palm Beach, Fort Lauderdale, and South Florida against state and federal tax crimes. We have extensive experience handling tax evasion, tax fraud, and other white collar criminal cases.
What Is Tax Evasion?
Tax evasion is not the same as tax avoidance.
Tax avoidance is legal. It involves reducing your tax liability by using legitimate deductions, credits, and other strategies allowed under state and federal law.
Tax evasion is different. It involves intentionally hiding or misrepresenting information to avoid paying taxes.
Examples include:
- Failing to file tax returns
- Underreporting income
- Hiding assets
- Claiming false deductions
- Filing fraudulent tax returns
- Sales tax fraud
- Failing to pay employment withholding taxes
Tax evasion charges often accompany other white collar offenses, including mortgage fraud, money laundering, and insurance fraud.
State and Federal Tax Evasion Penalties
Tax evasion can result in civil penalties, criminal charges, or both. The penalties depend on the amount of unpaid taxes and the facts of the case.
In Florida, tax evasion often involves sales tax fraud. Businesses may face charges for failing to file returns, failing to pay taxes owed, submitting false records, or underreporting taxable sales.
State penalties may include:
- First-degree felony: More than $100,000. Up to 30 years in prison and fines up to $10,000.
- Second-degree felony: More than $20,000 but less than $100,000. Up to 15 years in prison and fines up to $10,000.
- Third-degree felony: More than $300 but less than $20,000. Up to five years in prison and fines up to $5,000.
- First- or second-degree misdemeanor: Less than $300. Up to one year in jail and fines between $500 and $1,000.
Federal tax evasion carries severe consequences as well. A conviction may result in:
- Up to five years in federal prison
- Fines up to $100,000 for individuals
- Fines up to $500,000 for corporations
The IRS may also assess additional penalties, file tax liens, levy bank accounts, garnish wages, or seize property.
Defending Tax Evasion Charges
The government must prove you intentionally violated the law. Honest mistakes, accounting errors, or misunderstandings do not automatically amount to criminal tax evasion.
Depending on the facts, possible defenses may include:
- You made an honest mistake rather than intentionally committing fraud.
- The government cannot prove criminal intent.
- The statute of limitations has expired.
- The evidence is insufficient.
- Your history of filing and paying taxes supports your defense.
Every case is different, and an experienced defense attorney can evaluate the strongest strategy for your situation.
Speak With a West Palm Beach Tax Evasion Defense Attorney
If you are facing tax evasion, tax fraud, or another state or federal tax crime, don’t face the government alone.
Herman Law, P.A. aggressively defends clients throughout South Florida. When possible, we work to negotiate favorable resolutions with the Florida Department of Revenue or the IRS. When necessary, we fight the charges in court to protect your rights, your finances, and your freedom.
Contact our office today to schedule a free consultation.
Herman Law, P.A. represents clients in West Palm Beach, Fort Lauderdale, Martin County, Okeechobee County, Palm Beach County, and throughout South Florida.