{"id":352161,"date":"2023-08-29T11:12:43","date_gmt":"2023-08-29T16:12:43","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/criminal\/criminal-charges\/tax-evasion.html"},"modified":"2023-08-29T11:12:43","modified_gmt":"2023-08-29T16:12:43","slug":"tax-evasion","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/tax-evasion.html","title":{"rendered":"Tax Evasion"},"content":{"rendered":"\n
\n

Tax Evasion<\/h1>\n\n
\n
\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Rhonda Earhart, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

The distinction between tax fraud and tax evasion determines the severity level of the criminal cases that the government pursues. This applies in particular when a big sum of money is involved. It is especially true if there’s reasonable doubt about the source of the funds.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

A tax evasion offense carries significant and long-term consequences. If you intentionally underreport your income taxes owed or fail to pay them, you might face charges of tax evasion or even a willful attempt to defraud the federal government.<\/p>\n

This could also apply if you neglect to report income as reflected in your bank accounts. Such actions could lead to criminal\u00a0tax fraud charges<\/a>\u00a0and other financial crimes. While it’s a separate criminal offense, tax evasion is often seen with those suspected of white-collar crimes. It may also come in the form of\u00a0money laundering<\/a>.<\/p>\n

Suspicion for tax crimes often arises when the source of a person’s income is in doubt or suspicious. Consider the famous Prohibition-era gangster Al Capone. Authorities\u00a0convicted Capone\u00a0not for murder or\u00a0racketeering\u00a0<\/a>but for evading taxes.<\/p>\n

This article looks at the\u00a0Internal Revenue Service’s<\/a>\u00a0(IRS) criteria that define tax crimes. You’ll also find:<\/p>\n