Los Angeles Tax Evasion Defense Lawyers

Every year, the federal government loses upwards of $1 trillion to tax evasion. Facing that level of financial loss, it’s no surprise the IRS takes these cases seriously or that a conviction carries severe criminal penalties. There is, however, a meaningful difference between being charged with tax evasion and actually being guilty of it. A tax evasion defense attorney’s first job is to make the government prove its case. Shevin Law Group has handled criminal defense in state and federal courts since 1992, including cases before the U.S. District Court for the Central District of California, and we bring that same tenacious advocacy to IRS investigations before charges are ever filed.

If you’re under IRS investigation, contact a Los Angeles tax evasion attorney from our office today. Call (818) 918-5838 or reach us online to schedule a consultation.

How Tax Evasion Works

Tax evasion goes well beyond refusing to file on April 15. Common forms include understating income, overstating deductions, conducting business in unreported cash, and concealing taxable income in offshore accounts. Some individuals use foreign banks with minimal regulatory oversight to shift money out of the IRS’s view entirely.

Even everyday arrangements can cross the line. Someone who pays a housekeeper in cash is welcome to do so, but that income still has to be reported on both ends. The employer must file a W-2 and account for payroll taxes. Failing to do so can constitute tax evasion, regardless of how routine the arrangement feels.

The line between aggressive tax planning and illegal evasion isn’t always obvious. Claiming every legitimate deduction available to a business or individual is perfectly legal. Claiming deductions that don’t apply crosses into evasion. The same logic holds for anyone with a complex financial portfolio who pushes too far.

The California Franchise Tax Board and the California Department of Tax and Fee Administration both have authority to investigate state tax evasion, alongside the IRS. At the federal level, the criminal statute of limitations under 26 U.S.C. Section 7201 is generally six years from the date of the offense. For civil tax fraud, there is no statute of limitations at all.

Penalties for Tax Evasion

Tax evasion exposes defendants to penalties at both the federal and state levels. Under Section 7201 of the Internal Revenue Code, a federal conviction can result in fines up to $100,000 for an individual or $500,000 for a corporation, up to five years in federal prison, and restitution covering the government’s prosecution costs.

California treats tax evasion as a “wobbler” under Revenue and Taxation Code Section 19706, meaning prosecutors have discretion to charge it as either a felony or a misdemeanor based on the facts. A felony conviction carries up to three years in state prison; a misdemeanor conviction carries up to one year in county jail. Either track can result in fines up to $20,000.

The consequences don’t stop at sentencing. A conviction can trigger a civil tax fraud penalty equal to 75% of the unpaid amount under 26 U.S.C. Section 6663, jeopardize professional licenses, result in federal tax liens, and leave lasting reputational damage. Tax debts arising from fraud generally can’t be discharged in bankruptcy. That combination of criminal and civil exposure is exactly why early legal intervention matters.

Facing tax evasion charges in Los Angeles? Call our office today at (818) 918-5838 or contact us online to speak with a tax evasion lawyer.

Defenses Against Tax Evasion

Complex tax returns invite mistakes, and the IRS isn’t immune to making them. One avenue for the defense is simply proving that the government’s calculations are wrong. We work with forensic analysts and financial experts who can examine what the IRS claims is owed and identify errors in that analysis.

Even where the numbers aren’t in dispute, a mistake isn’t a crime. Intent, what federal courts call willfulness, is a required element of tax evasion under 26 U.S.C. Section 7201. The prosecution must prove beyond a reasonable doubt that the defendant knowingly attempted to evade taxes. That’s a substantial burden, and contesting it is central to what we do.

A defendant who relied on the advice of an accountant or tax preparer presents a much harder case for the government. Good-faith reliance on a professional’s guidance can undermine the prosecution’s ability to establish willful intent. We also examine whether any constitutional violations occurred during the IRS’s investigation, which may warrant suppression of evidence.

With over 30 years of criminal defense experience in Los Angeles and established federal court representation, we bring the same rigorous, tenacious advocacy to tax evasion cases that we apply across our entire criminal defense practice. Our clients have their income, their reputation, and sometimes their freedom on the line. We take that seriously.

If you’re facing a tax evasion case in the Los Angeles area, call us at (818) 918-5838 or contact us online to set up an initial consultation.