Tax Deficiency as a Form of Federal Fraud and Tax Evasion
There are many different types of federal fraud-related criminal charges that a person can face in relation to taxes, including tax evasion. Within the category of tax evasion, there are specific elements that the government must prove, depending on the particular charges and details of the case. In particular, when a person is facing charges for attempted tax evasion, one element that the government must prove is something known as “a substantial tax deficiency.” What is a tax deficiency, and what makes it substantial?
Whether you have received a target letter informing you about potential federal tax evasion or other tax fraud charges, or you have already been charged, it is crucial to seek legal assistance as quickly as possible. In the meantime, our Tampa federal fraud defense attorneys can explain the nature of “tax deficiency” in more detail.
What is Tax Deficiency in Relation to Tax Evasion?
Under proposed federal jury instruction number 26.7201-14, and drawn from the United States Supreme Court case of United States v. Johnson (1943), “one element of attempted tax evasion is a substantial tax deficiency or, in other words, a substantial amount of federal income tax due and owing by the defendant over and above the amount of tax reported in the defendant’s returns.”
In order to convict a person of attempted tax evasion, the government is required to prove beyond a reasonable doubt that the defendant made “a willful attempt to evade a substantial portion of tax,” resulting in a substantial tax deficiency. There is no specific amount that constitutes “substantial.” Instead, what is considered substantial is generally determined on a case-by-case basis for criminal cases.
In civil cases, a tax deficiency of $5,000 or 10 percent of the total tax you owed is generally considered “substantial.” However, in criminal proceedings under criminal law, what constitutes a substantial tax deficiency will be determined based on the facts of the case.
Defending Against Charges in Which Tax Deficiency is an Element of the Offense
Like other federal fraud, and in particular tax fraud, charges, you can avoid a conviction if you can prove that your tax payments were not willfully deficient. There is a required element of intent that the government must prove, and absent intent, a person cannot be convicted of attempted tax evasion or tax evasion.
Contact a Tampa Criminal Defense Attorney to Get Started on Your Defense Strategy for Tax Evasion or Other Federal Fraud Charges
Tax fraud-related charges of any type must be taken extremely seriously, including allegations of tax deficiency. While this type of charge may not be quite as serious as other forms of fraud involving federal income taxes, allegations of tax deficiency can become very serious when a significant amount of money is involved and when there was an intention to defraud the government and the IRS. If you have been accused of any type of tax fraud or tax-related federal criminal offense, you should seek advice from an experienced Tampa federal criminal defense lawyer at the Law Offices of Daniel J. Fernandez, P.A. as soon as possible. Contact our firm today to learn more about the federal fraud defense services we provide and to begin developing a defense strategy for your case.
Source:
justice.gov/tax/file/1293361/dl
