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If you’re experiencing tax controversy, you’re probably fed up and looking for answers fast. One of the first things to figure out is whether your issue is with the IRS or your state’s tax agency. The legal system in the United States operates on two levels—state and federal—each with its own laws, courts, and enforcement agencies. The one seeking legal action against you changes everything—who you owe, what penalties you face, and how to fight back.
The Big Picture
Federal crimes are typically offenses that either violate federal law or cross state lines, placing them under the jurisdiction of the U.S. government.Federal laws govern a wide range of criminal behavior, from drug trafficking and mail fraud to tax evasion and conspiracy to defraud the U.S. government.
In the context of tax law, federal crimes stem from violations of the Internal Revenue Code. The IRS (Internal Revenue Service) is the primary agency responsible for investigating and prosecuting these offenses. Some common examples of federal tax crimes include:
- Tax Evasion: This is one of the most serious federal tax crimes. It involves deliberately misrepresenting your income, inflating deductions, or using illegal means to avoid paying federal taxes.
- Filing False Returns: Submitting false or fraudulent tax information to the IRS with the intent to deceive can lead to federal charges.
- Failure to File Taxes: If you’re required to file a federal tax return but fail to do so, you may face criminal prosecution.
- Conspiracy to Defraud the U.S.: This offense involves two or more people working together to deceive the federal government, usually by undermining the federal tax system.
Since these violations involve U.S. law, they’re prosecuted in federal courts by U.S. attorneys. Federal crimes carry significant penalties, including fines and lengthy prison sentences. Because federal crimes often deal with larger sums of money or activity that impacts multiple states, the enforcement tends to be more aggressive and thorough.
Focus on Local Laws
State crimes, by contrast, are offenses that violate laws enacted by individual states. Each state in the U.S. has its own criminal code and court system, which means that an action that’s illegal in one state might not be in another.
When it comes to tax law, states have their own rules in addition to federal tax laws. For instance, while you are required to file federal income taxes, you may also have to file state income taxes depending on where you live. Common state tax crimes include:
- Failure to Pay State Taxes: If you owe state income tax and fail to pay it, you could face state criminal charges.
- Sales Tax Evasion: Businesses are often required to collect sales tax on transactions and remit it to the state. Failing to do so, or underreporting sales, constitutes tax evasion on a state level.
- Filing False State Returns: Just like with federal taxes, submitting false information on state tax returns can lead to criminal penalties.
These cases are handled by state agencies, such as the Georgia Department of Revenue, and prosecuted in state courts. Penalties for state tax crimes can include fines, imprisonment, and additional fees or penalties specific to state law.
Avoiding Criminal Charges
Prosecutors at the state or federal level are focused on securing convictions. In federal cases, where the stakes are higher, the prosecution will be relentless in building a case against you. Even state-level charges can result in devastating consequences if not handled properly.
That’s why having experienced legal counsel on your side is the best way to protect your rights. You deserve a defense that is prepared to fight back against government scrutiny. Weisberg Kainen Mark is ready to stand between you and the government. Call (305) 374-5544 today to discuss how we can help protect your rights and your future.
Weisberg Kainen Mark, PL
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