Consequences of Tax Evasion in California (California Revenue and Taxation Code Section 19706)
Tax evasion is viewed by many as a white-collar crime usually committed by business people or government workers. Some people may assume white-collar crimes are not prosecuted as aggressively as other crimes or that a conviction results in little to no jail time.
However, tax evasion is considered a very serious crime in California and the penalties can be severe. If you or a loved one is charged with tax evasion, it is important to have an experienced Wallin & Klarich attorney to help protect your legal rights.
What is Tax Evasion? in California(California Revenue and Taxation Code Section 19706)
In the state of California, tax evasion occurs when a person or business entity purposely underpays taxes that are owed. “Underpaying” includes:
- Not reporting all income earned;
- Not filing a tax return;
- Lying or making false statements on a return; or
- Claiming to be a resident of another state to avoid paying taxes in California.
Under California Revenue and Taxation Code Section 19706, it is illegal for any person or employee of a corporation to:
- Knowingly fail to file any tax return or to supply any information with intent to evade any tax; or
- Willfully and intentionally make, render, sign or verify any false or fraudulent return or statement or supply any false or fraudulent information.
California tax evasion laws apply to all tax liabilities in the state of California no matter what type of tax evasion (income, vehicle, real estate, etc.) is committed.
What Must Be Proven for a Tax Evasion Conviction?
To be convicted of tax evasion under California Revenue and Tax Evasion Code Section 19706, the prosecution must prove the following:
- You made or verified a tax return or statement provided to the Franchise Tax Board (the agency that collects income taxes), Board of Equalization (the agency that collects corporate sales and use taxes) or Employment Development Department (the agency that pays out employee disability and unemployment benefits);
- The tax return or statement was false or fraudulent;
- When you supplied the information, you knew that the information was false or fraudulent; AND
- You knowingly and intentionally violated a legal duty and intended to unlawfully evade paying a tax.
Penalties You Face if You are Convicted of Tax Evasion in California
If you are convicted of tax evasion in California under Revenue and Taxation Code Section 19706, you face severe penalties including jail time and hefty fines. A conviction is punishable by up to one year in county jail or state prison. You could also be ordered to pay a fine of up to $20,000.
Call the Tax Evasion Attorneys at Wallin & Klarich Today
If you or a loved one is facing tax evasion charges, it is critical that you speak to an experienced criminal defense attorney as soon as possible. At Wallin & Klarich, our attorneys have over 40 years of experience successfully defending persons charged with tax evasion. Our attorneys will fight to get you the best possible outcome in your case.
With offices in Los Angeles, Sherman Oaks, Torrance, Tustin, San Diego, Riverside, San Bernardino, Ventura, West Covina and Victorville, there is an experienced Wallin & Klarich Southern California criminal defense attorney near you no matter where you work or live.
Call us today at (877) 4-NO-JAIL or (877) 466-5245 or fill out our online contact form. We will get through this together.
