Tax Fraud and Evasion

Criminal Defense Lawyer in Dallas, Texas

Tax evasion can be committed by trusts, corporations, companies, businesses and individuals. Are you facing allegations of a tax offense in Dallas, Texas? A Dallas criminal defense attorney from D'Amore Law Firm can help! With more than two decades of legal experience behind us, the Dallas criminal defense lawyers at our office have the know-how and skill to help you get the favorable case outcome you need.

Legal Explanation of Your Charges

Generally speaking, tax evasion is any scheme designed to avoid remitting tax payments back to the Internal Revenue Service (IRS). The IRS has approximately 2,700 employees dedicated to uncovering and investigating abusive tax schemes in the United States and across the globe. The IRS is the only federal agency with this power and aggressively pursues tax crime convictions.

Tax payment relies on self-evaluation, and as such, the IRS launches a multitude of tax investigations in the U.S. every year. Many of these investigations end with criminal accusations and convictions. In the 2012 fiscal year, the IRS initiated more than 2,987 tax investigations. 1,790 of these cases were prosecuted and 1,210 resulted in a criminal conviction.

Tax Evasion Schemes

Sometimes, taxpayers try to avoid paying the IRS by fabricating artificial losses. For instance, businesses may generate secondary financial records so that they can transfer funds and generate false financial losses. On paper, these transactions look like legitimate business losses; in reality, they are nothing more than fraudulent transfers. These transfers allow the business or individual to pay a lower tax bill and are commonly seen in music and media investments.

Individuals may attempt to avoid paying taxes by employing a spouse. Although it is perfectly legal to employ your husband or wife, it is not legal to avoid paying taxes by splitting your income with him/her. If the husband or wife has not been required to pay significant taxes in the past, the business owner may give a portion of his/her income to a spouse to avoid paying taxes on it. In situations like this, the spouse is usually paid a salary for an insignificant amount of work.

Charitable trusts may be used to avoid tax payment as well. According to the IRS, noncompliant taxpayers may transfer large sums of money into a trust, claiming that it is for a charitable organization. In reality, the trust continues to pay for the individual's personal, recreational and education expenses. Because charitable donations are tax deductible, the taxpayer avoids actually paying taxes on his/her income by referring to it as charitable money.

Employers and businesses may try to avoid paying income tax through pyramid schemes. In this type of evasion scheme, an employer deducts income tax payments from employees' salaries but never remits payment to the IRS. This money is then used for other business or personal expenses. Sometimes, employers pay their employees with cash to avoid paying taxes. This type of tax evasion can leave employees without social security benefits in the future.

Family residence trusts may be used to avoid tax payment as well. First, the taxpayer transfers a residence and its furnishings into a trust. Then, the residence is rented back to the taxpayer who attempts to deduct expenses related to the residence from their tax payment. The trust may deduct depreciation, utilities payments and gardening expenses in order to avoid tax payments. Family residence trust schemes are easily uncovered and collapsed by the IRS.

Accused? D'Amore Law Firm can help!

Tax evasion is a serious crime. If convicted, you could face up to five years in prison and a $100,000 fine. If convicted of filing a fraudulent tax return, you could be forced to pay a $100,000 fine and spend three years in prison. At D'Amore Law Firm, we are dedicated to helping clients in Dallas and the surrounding area fight criminal charges. Our firm has 20 years of defense and prosecution experience - let us put it to work for you. With experience on both sides of the courtroom, we can help you understand your legal circumstances and rights. Together, you and a Dallas criminal defense lawyer from our firm can begin building an aggressive and strategic case plan to defend your rights in court. Contact us today or fill out a free case evaluation form to see what a high-quality Dallas criminal defense lawyer can do for your case. To stay connected and learn more about the firm, visit our profile on Facebook.