Bakersfield Tax Evasion Lawyer

Facing tax evasion charges in California is a serious legal matter that can have life-altering consequences. Whether the charge arises from an IRS investigation or a California Franchise Tax Board audit, the penalties for a conviction can include hefty fines, asset seizure, and even prison time. If you or your business is under investigation for tax evasion, you need an experienced Bakersfield tax evasion attorney to defend your rights and build a strong legal strategy.

At Humphrey & Thompson, we offer skilled and confidential representation for individuals and businesses accused of tax crimes. We understand the complexities of both state and federal tax law and provide aggressive defense tailored to your unique situation.

Contact us today to schedule a confidential consultation with a knowledgeable Bakersfield tax evasion lawyer and take the first step toward resolving your legal issues.

What is Tax Evasion?

Tax evasion is the illegal act of deliberately avoiding paying owed taxes. It differs from tax avoidance, which involves using legal methods to minimize tax liabilities. Tax evasion involves fraudulent actions, such as underreporting income, inflating deductions, or hiding assets, with the intent to deceive tax authorities.

In California, tax evasion can be prosecuted under both state and federal laws. The Internal Revenue Service (IRS) handles federal cases, while the California Franchise Tax Board (FTB) may pursue state-level charges. Both agencies have significant resources and investigative powers at their disposal.

Common Examples of Tax Evasion

Tax evasion can take many forms, ranging from individual income tax fraud to complex business schemes. Here are some of the most common examples:

• Underreporting Income: Failing to report all sources of income, such as cash payments or tips.
• Inflating Expenses: Claiming false or exaggerated deductions to reduce taxable income.
• Offshore Accounts: Hiding income in foreign bank accounts not disclosed to the IRS.
• Payroll Fraud: Misclassifying employees as independent contractors to avoid payroll taxes.
• Filing False Tax Returns: Submitting returns with deliberately incorrect information.
• Failure to File Tax Returns: Not filing tax returns altogether when legally required.
• Structuring Transactions: Breaking up large deposits to avoid IRS reporting thresholds.

Each of these actions can lead to criminal tax evasion charges, audits, civil penalties, or both.

State & Federal Tax Evasion Penalties

The penalties for tax evasion are severe at both the state and federal levels. Convictions can result in long-term financial damage, professional consequences, and incarceration.

Federal Penalties (IRS)

Under 26 U.S. Code § 7201, a person convicted of tax evasion may face:

• Up to 5 years in federal prison
• A fine of up to $100,000 for individuals or $500,000 for corporations
• Prosecution costs
• Potential forfeiture of assets

California State Penalties (FTB)

Under the California Revenue and Taxation Code § 19705, state penalties can include:

• Up to 3 years in state prison
• Fines up to $20,000
• Interest and civil penalties on unpaid taxes
• Loss of professional licenses
• Additional assessments and tax audits

In some cases, a defendant may be charged under both federal and state laws, leading to dual prosecutions or enhanced sentencing.

Legal Defenses Against Tax Evasion Charges

Facing tax evasion charges doesn’t mean a conviction is inevitable. With the help of an experienced Bakersfield tax evasion lawyer, you may be able to present one or more of the following legal defenses:

• Lack of Intent: One of the key elements in a tax evasion case is willful intent. If you made a mistake or were negligent but did not act intentionally to defraud the government, this could be a viable defense.
• Reliance on a Tax Professional: If you relied in good faith on a tax preparer, CPA, or financial advisor who made errors in your return, this may help to negate criminal intent.
• Insufficient Evidence: The government bears the burden of proving your guilt beyond a reasonable doubt. If there is insufficient or circumstantial evidence, your case may be dismissed or result in acquittal.
• Filing Amended Returns: If errors are discovered early in the process, voluntarily amending your tax returns and paying what you owe may help mitigate or avoid criminal charges.
• Statute of Limitations: Both the IRS and FTB have time limits for pursuing criminal tax charges. If too much time has passed since the alleged offense, the case may be barred from prosecution.

At Humphrey & Thompson, we will thoroughly examine every aspect of your case to identify weaknesses in the prosecution’s arguments and determine the best path forward.

Tax Evasion FAQs

Can I go to jail for tax evasion in California?

Yes. Both state and federal laws impose prison time for tax evasion. Federal convictions can lead to up to 5 years in prison, while state convictions can result in up to 3 years.

What is the difference between tax evasion and tax fraud?

Tax evasion is a form of tax fraud. It specifically involves the willful attempt to avoid paying taxes. Tax fraud is a broader term that includes various fraudulent acts related to taxes, including evasion, false statements, and identity theft.

Will I get audited before being charged?

Often, yes. An audit may precede a criminal investigation. However, audits can also be civil in nature. If auditors suspect fraud, they may refer the case to criminal investigators.

Can I settle tax evasion charges out of court?

Possibly. In some cases, a skilled tax evasion attorney may be able to negotiate a settlement, plea bargain, or reduced charges depending on the evidence and your cooperation.

How do I know if I’m under investigation for tax evasion?

You may receive letters from the IRS or FTB, experience increased audit activity, or be contacted by investigators. If you suspect you’re being investigated, seek legal counsel immediately.

Speak to a Bakersfield Tax Evasion Lawyer Today

If you’re under investigation or facing charges for tax evasion in Bakersfield or anywhere in Kern County, time is critical. Federal and state tax authorities are relentless and highly skilled. You need an equally skilled and experienced legal advocate in your corner.

At Humphrey & Thompson, we provide personalized, discreet, and aggressive representation for clients accused of tax crimes. Our goal is to protect your rights, minimize your exposure, and help you reach the best possible outcome.

Contact us today for a confidential consultation.