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

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Tax Law Offices of David W. Klasing, PC

Mar 18, 2021, 06:37 ET

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.

Why you should use an Attorney to represent you in an audit

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.

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

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