When it comes to balancing time between work, paying bills, and keeping up with taxes, mistakes can be made while calculating your taxes. In some cases, mistakes can become habitual and turn into tax evasion. There can be serious legal consequences for facing criminal charges of tax evasion. Understanding what to expect if you are charged and what the first steps are may help you avoid some of those consequences. Talk to a Tennessee criminal law lawyer if you are ready to take that first step in your defense.
Your Right to Appeal the IRS
We are all human, mistakes can happen to anyone, especially when it comes to calculating numbers. Even a minor mistake can offset everything else. This is why the IRS fixes minor errors for you at no expense. Fixing errors after you already submitted your tax form can often be done online. The IRS will send you a letter to confirm the changes and will let you know whether you are in good standing.
In some cases, you may be able to file an . Situations that allow you the right to file an appeal can involve unresolved conflicts with the IRS, cases where your claim was wrongfully denied, if you wish to challenge a proposed tax change, or if you were wrongfully taxed despite being tax-exempt. Working with the right lawyer can help you start the appeals process and figure out your legal options.
When Mistakes Become Tax Evasion
Tax evasion and fraud can grow from minor mistakes that turn into chronic or purposeful mistakes. Saving money is something many people want to do, but facing the legal consequences for tax evasion can be daunting. The term covers a broad range of illegal methods to avoid paying taxes.
Being charged with tax evasion means the IRS discovered a significant misrepresentation of your income either through underreporting, inflating deductions, or concealing large sums of money. Some people find themselves in situations where it is too late to turn back and report their actual income. This can lead people to continue with their tax evasion strategies to avoid being charged with fraud.
In certain situations, some people may also be charged with money laundering if they were concealing their income through other businesses. The legal consequences of being charged with tax evasion can involve monetary penalties, being arrested, and jail time. Jail time typically does not exceed 5 years depending on the situation.
A lawyer may be able to help you lessen these legal consequences or help you avoid consequences if you were wrongfully charged.