Tax Penalties

Differences Between Criminal Tax Penalties And Civil Tax Penalties?

Tax Law

It is easy to confuse criminal tax penalties and civil tax penalties. Both penalties are imposed for tax violations. However, they have very different natures and implications. If you have not kept up with your tax obligations, it is time to know the differences between criminal tax penalties and civil tax penalties.

Civil tax penalties are imposed for tax violations after you file your tax return. They are generally the least expensive penalties, and they are reserved for cases that do not warrant criminal penalties.

Criminal tax penalties are imposed after you have been convicted of a tax crime. They are generally the most expensive penalties, and they are reserved for cases that warrant criminal penalties. 

If you are facing either penalty, you need an experienced attorney who has a deep understanding of tax law and dealing with the IRS. At the Law Offices of Mary E. King, we can provide the legal counsel and expertise you need during these matters.

Read on to learn more about the differences and to further discuss criminal tax penalties vs civil tax penalties. If you determine that you need legal representation, contact Mary King and her team today.

What Is a Criminal Tax Penalty?

Criminal tax penalties are imposed after a taxpayer has been convicted of a tax crime, such as tax fraud or tax evasion. They are imposed by the IRS and serve as a reminder to all taxpayers that tax crimes are serious.

Criminal tax penalties have a maximum prison term of five years. They also tend to come with a fine, which can amount to as much as $100,000.

What Is a Civil Tax Penalty?

Civil tax penalties are far less severe compared to criminal tax penalties. There is no jail time involved with civil tax cases. However, you could get a penalty totaling up to $75,000.

Criminal Tax Offenses

A criminal tax offense is a violation of the criminal law. These violations include but are not limited to the following:

1. Fraudulent tax returns
2. Bribing a tax official or a tax return preparer
3. Money laundering
4. Tax evasion
5. Failure to obey a court order

Civil Tax Offenses

A civil tax offense is a violation of the tax laws. These violations include but are not limited to the following:

1. Not filing a tax return
2. Failing to pay taxes due
3. Failure to provide foreign information penalty
4. Accuracy penalty
5. Audit penalty

Why You Should Hire a Lawyer for Tax Penalties

Violating tax laws can land you in hot water with the IRS or other authorities. Even if you follow all the rules and file your taxes on time, you still might be held liable for taxes you owe or penalties for tax avoidance. 

This is why you should hire an experienced tax lawyer to represent you in situations where you’re at risk of facing criminal penalties. 

Your lawyer can give you the expert legal counsel you need to navigate the complexities of a criminal tax case. Remember, you’re dealing with the IRS here, and they are going to come prepared and well-equipped.

Doesn’t it make sense to do the same on your end? With a trusted tax attorney like Mary King, you can be sure that you have knowledge and experience on your side. In fact, Mary has more than 30 years of experience, so you know there isn’t anything she hasn’t seen concerning tax law.

Keep in mind that the penalties for tax crimes can be severe, and they apply to both individuals and corporations. Your tax lawyer can help you navigate these complex legal implications and protect your interests. 

Your tax lawyer can also help you fight tax evasion charges, file the right tax returns, and prevent criminal penalties for corporate tax violations. But if you try to take on the IRS all by yourself, you’re going to find yourself sorely outmatched.

So instead, let your attorney devise an action plan that serves to present restitution and repair. If you can convince the IRS that they will be made whole, you might be able to avoid the more severe consequences that typically come with criminal tax penalties.

Moreover, the severity of your tax offense depends on numerous factors, including the penalties, laws, and guidelines that you violated, your level of knowledge, and whether you have a history of breaking the law. 

If you have any of these potential risks, then it’s time to get in touch with an accomplished tax lawyer to help you protect your interests.

Contact the Law Offices of Mary King Today

The Law Offices of Mary King are Florida’s leading legal counsel regarding tax matters. Don’t let your tax issues get out of hand. Get the legal representation you deserve by calling 941-906-7585 or submitting this contact form.

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