What is Tax Fraud / Tax Evasion?
Section 7201 of the Internal Revenue Code makes it a Federal crime or offense for anyone to willfully attempt to evade or defeat the payment of federal income taxes. A person can be found guilty of that offense only if all of the following facts are proven beyond a reasonable doubt:

First: That the person owed substantial income tax in addition to that declared in his tax return; and

Second: That the person knowingly and willfully attempted to evade or defeat such tax.

The proof need not show the precise amount of the additional tax due, but it must be established that the person knowingly and willfully attempted to evade or defeat some substantial portion of such additional tax as charged.
The word "attempt" contemplates that the person had knowledge and an understanding that, during the particular tax year involved, he had which was taxable, and which he was required by law to report; but that he nevertheless attempted to evade or defeat the tax, or a substantial portion of the tax on that income, by willfully failing to report all of the income which he knew he had during that year.

What are the penalties for tax evasion ?

In the case of U.S. Federal income taxes, civil penalties for willful failure to timely file returns and willful failure to timely pay taxes are based on the amount of tax due; thus, if no tax is owed, no penalties are due. The civil penalty for willful failure to timely file a return is generally equal to 5.0% of the amount of tax "required to be shown on the return per month, up to a maximum of 25%. By contrast, the civil penalty for willful failure to timely pay the tax actually "shown on the return" is generally equal to 0.5% of such tax due per month, up to a maximum of 25%. The two penalties are computed together in a relatively complex algorithm, and computing the actual penalties due is somewhat challenging.

In cases where a taxpayer does not have enough money to pay the entire tax bill, the IRS can work out a payment plan with taxpayers.
For years for which no return has been filed, there is no statute of limitations on civil actions -- that is, on how long the IRS can seek taxpayers and demand payment of taxes owed.
For each year a taxpayer willfully fails to timely file an income tax return, the taxpayer can be sentenced to one year in prison. In general, there is a six-year statute of limitations for with respect to Federal tax crimes.

What is forfeiture?
The government may seek criminal forfeiture when the property was obtained through criminal activity. For example, the government may seek forfeiture of money or bank accounts if it proves that the money is the proceeds of a crime.

Do I need a lawyer to represent me if I am innocent?
Every criminal defendant needs an attorney. Innocent defendants are perhaps in even greater need of zealous representation throughout the criminal process to ensure that their rights are protected.

Do I need a lawyer if I simply intend to plead guilty ?
You may not understand the full implications of the crime with which you are charged. Criminal defense attorneys equalize the balance of power between the defendant and the prosecution and ensure that the constitutional rights that are guaranteed to all criminal defendants are preserved.

Kuniansky & Associates
The Lyric Centre
440 Louisiana , Suite 200
Houston, Texas 77002
Office: 713-622-8333
Fax: 713-224-2815