Tax evasion conviction could come with significant penalties

Tax evasion conviction could come with significant penalties

On Behalf of | Aug 27, 2021 | Tax Law

Though most Colorado residents do not enjoy the idea of paying taxes, they typically face their necessary obligations and pay the IRS what it is owed. However, in some cases, the IRS may suspect a person or business of being less than forthcoming with their tax-related information and could suspect tax evasion. If so, the accused person or entity will likely want to defend against such accusations. 

It is not unheard of for the IRS to make a mistake when suspecting tax evasion. However, the agency often looks for signs of the following illegal activities: 

  • Conspiracy to defraud 
  • Filing false tax returns 
  • Preparing false tax returns 
  • Failure to pay taxes 
  • Conspiracy to commit a tax offense 
  • Failure to file a tax return 
  • Delivering false tax documents 
  • Claiming false exemptions 

Essentially, if individuals or businesses do not provide truthful information to the IRS or attempt to hide certain information, they may be accused of fraud. These accusations are not something to take lightly as a conviction for any of the above offenses could have consequences ranging from one to 10 years in prison and monetary fines ranging from $100,000 to $250,000. It is also possible for civil penalties to apply. 

If Colorado taxpayers are accused of tax evasion, tackling the situation head on may be a beneficial course of action. Working to understand the exact charges and available defense options may give these parties a better opportunity to maintain their innocence and mitigate any resulting consequences. Of course, having professional legal counsel could also prove helpful in such challenging predicaments.