Miami Tax Evasion Attorney

Key Elements the Prosecution Must Prove

To convict a client of tax evasion, the prosecution must prove three distinct elements beyond a reasonable doubt. The defense strategy deployed by a tax evasion attorney in Miami almost always focuses on breaking the chain of evidence supporting one or more of these elements:

• The Existence of a Tax Deficiency: The government must first prove that the taxpayer actually owed more taxes than they reported. This requires extensive financial analysis, often involving the complex net worth method or expenditures method to reconstruct the taxpayer’s true income.
• Affirmative Act of Evasion: The defendant must have taken a positive, affirmative step to evade or defeat the tax. Unlike the mere failure to pay, the law requires an overt act of deception. Examples include:
  • Concealing income or assets in foreign bank accounts.
  • Falsifying or destroying records.
  • Creating false invoices or deductions.
  • Lying to IRS agents.
• Willfulness: This is the most crucial element in any tax evasion case. The government must prove that the defendant acted with the specific intent to violate the law. Simple negligence, error, or poor record-keeping is not enough. This is where a Miami tax evasion lawyer can often win the case, arguing that the client genuinely misunderstood the complex tax code or relied on bad advice from an accountant.

We dedicate significant resources to challenging the government's assertion of willfulness, a defense that requires sophisticated legal and financial acumen.

Common Examples of Tax Evasion in Miami

Whether through evasion of assessment or payment, tax evasion may involve a wide range of specific actions. Our Miami tax evasion attorneys are prepared to represent individual taxpayers, accountants, and other tax professionals facing these criminal charges.

Here are some examples of tax evasion that can lead to a variety of financial and legal consequences:

• Failing to file a tax return. While some taxpayers may miss the filing deadline due to negligence or misunderstanding, intentional non-filing with the purpose of avoiding tax liability is a criminal offense. Authorities often view this as an indication of an egregious intent to defraud the government, leading to penalties like up to one year of incarceration and fines of up to $100,000 for each missed tax year.
• Underreporting income. Individuals or businesses may intentionally report lower income than what they have actually earned. This can involve omitting cash transactions or not disclosing income from side businesses. For example, a freelancer might only report a portion of their earnings to evade taxes on the full amount. Misrepresenting or concealing financial information on your tax return is punishable by up to five years in prison and $100,000 in fines.
• Inflating deductions. Taxpayers may exaggerate allowable deductions to reduce taxable income. For example, an individual might list personal expenses as business-related, such as claiming personal travel costs as travel expenses for work. This tactic misrepresents actual tax obligations and can lead to significant penalties if discovered.
• Misclassification of workers. Employers might misclassify employees as independent contractors to avoid payroll taxes. By doing so, they evade the responsibility of withholding income taxes, Social Security, and Medicare payments.
• Use of offshore accounts and shelters. Establishing offshore accounts or using foreign entities to hide income or assets from tax authorities is a common tactic among wealthy individuals and corporations. Such entities may obscure ownership and allow individuals to evade taxes on unreported income.
• Engaging in backdoor transactions. Individuals or corporations may conduct transactions that are intentionally misleading, such as transferring property at undervalued rates to minimize gift or estate taxes. These backdoor transactions are designed to circumvent tax liabilities and can lead to severe legal consequences when discovered.
• Falsifying a tax return. Some individuals directly falsify information on their tax returns, including fabricating income and expenses or providing false documentation to support fraudulent claims. Filing a fraudulent tax return is punishable by up to three years in prison and $100,000 in fines.
• Failing to pay taxes. This misconduct occurs when individuals or entities with an established tax liability choose not to remit payment. Reasons might include a deliberate refusal to comply, claims of financial hardship with false documentation, or utilizing tactics like fragmentation strategies to obscure income and evade payment obligations. Failing to pay taxes is punishable by up to three years in prison and $250,000 in fines.

Potential Penalties for Tax Evasion in Florida

The repercussions of a tax evasion conviction can be severe, encompassing both criminal and civil penalties.

Federal Penalties:

• Up to 5 years in prison per offense.
• Fines up to $250,000 for individuals and $500,000 for corporations.
• Payment of prosecution costs.

Florida State Penalties:

• Classification as a third-degree felony.
• Fines up to $50,000 for individuals and $200,000 for businesses.
• Potential imprisonment and additional civil penalties.

Beyond legal sanctions, a conviction can lead to collateral consequences such as loss of professional licenses, reputational damage, and immigration issues.

Collateral Consequences in Miami:

The non-custodial consequences of a tax evasion conviction are severe, particularly in a professional business environment:

• Professional Licensing: Convictions for financial crimes invariably lead to the loss of professional licenses (CPA, financial advisor, attorney, real estate broker).
• Reputational Damage: A felony conviction is a death blow to a financial or business reputation, making future employment or financing nearly impossible.
• Immigration Issues: For non-U.S. citizens residing in Miami, a federal felony like tax evasion can lead to deportation or inadmissibility to the United States.
• Asset Forfeiture: The government may seek to forfeit assets tied to the alleged illegal activity, potentially seizing homes, bank accounts, or business interests.

Securing the help of a knowledgeable tax evasion attorney in Miami is the only way to mitigate or eliminate these career and life-altering risks.

Accused of tax fraud? Call our Miami tax evasion attorneys at Beckham Law Firm to find out what our team can do to protect your interests. Contact our Miami tax evasion lawyers by calling (786) 244-8010 or filling out our online contact form.