What is the Good Faith Defense for Income Tax Evasion?
Tax fraud is a type of white collar criminal offense that includes many different forms of tax fraud, including income tax evasion, and is taken extremely seriously by the federal government and by prosecutors. According to data from the United States Sentencing Commission, in 2020, there were a total of more than 64,000 tax fraud cases reported, and the average prison sentence served was 16 months. Of those individuals who were convicted of federal tax fraud, nearly 70 percent were sentenced to a term of imprisonment — a majority of those convicted served prison time, in other words. Sentences were more severe, and continue to be increased, in cases involving “sophisticated means to execute or conceal the offense,” being in a supervisory or leadership role in the offense, “abusing a public position of trust,” or engaging in any type of obstruction.
In short, if you are being investigated for income tax evasion or any other form of tax fraud, or you have already been indicted with charges against you, it is crucial to begin working with a defense lawyer as soon as possible. There are many different types of defenses that may be relevant to a tax fraud case involving income tax evasion, including the “good faith” defense. What is this defense, and is it relevant to your case? Our federal tax fraud defense attorneys can provide you with more information.
Elements of the Offense of Income Tax Evasion
In order to understand the “good faith” defense to tax fraud charges, it is necessary to understand the essential elements of the offense of tax fraud. Those include:
- Defendant owed substantially more federal income tax than what was indicated as due on their income tax return;
- Defendant intended to evade or defeat the payment of the tax;
- Defendant then willfully committed an affirmative act in furtherance of their intent; and
- Defendant did not have a good faith belief that they were complying with the provision of federal tax law.
How the Good Faith Defense Works
In order to be convicted of federal income tax evasion, the federal prosecutor must prove all of the above elements, including the fourth and final elements. In other words, the government must prove that you did not have a good faith belief that you were complying with federal tax law. Accordingly, if you did have a good faith belief that you were in compliance when you filed your income taxes, you cannot be convicted.
It is important to know that a person’s belief can be in good faith — and thus the government cannot prove the fourth essential element of the offense — even if their belief is not reasonable. In other words, even if the good faith belief was entirely unreasonable yet it was in fact a good faith belief, it may be possible to avoid a conviction. This is the “good faith” defense strategy in a case involving income tax evasion.
Contact Our Tampa Criminal Defense Attorneys Today If You Are Facing Federal Tax Fraud Charges
Are you facing income tax evasion charges or any type of tax fraud charges? You should seek advice from one of the experienced Tampa fraud defense lawyers at the Law Offices of Daniel J. Fernandez, P.A. today.
Sources:
ussc.gov/sites/default/files/pdf/research-and-publications/quick-facts/Tax_Fraud_FY20.pdf
justice.gov/tax/file/1293361/dl
