From the Tax Law Offices of David W. Klasing - How Federal and State Governments Prove You Willfully Engaged in Tax Evasion

IRVINE, Calif., March 18, 2021 /PRNewswire/ -- Both federal and state taxing authorities seek to deter tax crimes by making an example of a broad spectrum of tax cheats across multiple industries and tax brackets.

The Supreme Court allowed the willfulness requirement to be inferred from "any conduct, the likely effect of which would be to mislead or to conceal." Spies v. United States, 317 U.S. 492, 499 (1943). Evidence used to prove guilt will be based on the actions of the defendant and reasonable inferences that can be drawn from it.

Methods a taxpayer might employ to evade the assessment of taxes:

• Concealing various sources of income
• Creating multiple ledgers of their finances to hide their income
• Destroying documents regarding finances
• Hiding employee wages by paying them in cash
• Making fraudulent statements to the IRS and its agents and coercing employees to lie to the IRS
• Producing falsified invoices
• Utilizing independent contractors or misclassifying employees as contractors to avoid tax withholding

In proving evasion of payment, the government could look for the following:

• Avoiding the use of credit cards, checks, and other forms of payment that may leave a paper trail
• Changing the ownership of their assets to family members and others
• Creating a bank account with fraudulent information like a fake name or false social security number
• Funneling personal income or debt to others
• Laundering money through foreign financial accounts
• Opening safety deposit boxes under fake names to hide jewelry, gems, and other valuable personal property
• Using other people's bank account to hide money and assets

If you at risk of being charged with tax evasion because of a federal or state civil audit, eggshell audit or reverse eggshell audit or criminal tax investigation, quickly contact a dually licensed California Tax Attorney and CPA. The Tax Law Offices of David W. Klasing want you to know that you do not have to face the taxing authorities and their investigators without legal defense and accounting representation. To talk to David W. Klasing about your case, call us at (800) 681-1295 for a confidential consultation on schedule online HERE. We represent clients nationally over IRS issues and in California for state issues.

See the full version of this article here.

Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC

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