What is the Difference Between Tax Evasion and Tax Avoidance?

Posted by on Oct 19, 2015 in Criminal Laws | 0 comments

Tax evasion and tax avoidance tend to be misconstrued by a mass audience, thanks to the similarities in the connotations. To evade something is to escape it and to avoid something is to stay away from it. Those are pretty much the same thing, right?

That is where most people go wrong – and this is a mistake that could very well result into a criminal conviction.

Ask Westchester white collar crime lawyers and they’ll be the first to tell you that one of these terms is perfectly legal while the other is a federal offense. Tax evasion is willfully falsifying records in order to refrain from paying taxes or not paying taxes entirely. Tax avoidance is the difficult but legal way some people can avoid paying a large tax. There are many financial tricks and techniques in order to save money through lawful tax avoidance.

Evasion is illegal through the means of falsities. Tax evasion is also known as tax fraud and there are many ways to commit this crime such as unlawfully applying for benefits or deductions that you are not eligible for or not complying with the submission of your income report. The Internal Revenue Service (IRS) are not too keen to let this pass and so, if you are accused of tax evasion for actions that constitute as legal tax avoidance, it is so important to immediately consult with a defense attorney before giving any sort of statement.

Chances are that, if you have been approached by IRS agents on the grounds of tax evasion, there is a high probability that you have already been monitored for a long time. That gives you quite the disadvantage in terms of preparation. However, it is well within your constitutional rights to refuse to answer questioning without the counsel of your legal team.

It is then recommended to contact your chosen legal team immediately as soon as you are questioned for tax evasion.

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