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Everything You Need To Know About Penalties For Tax Evasion in the US

The IRS (Internal Revenue System) has framed certain laws about paying the taxes for individuals, married couples, business owners, and so on residing in the US. They offer individual forms and ensure complete support while filing for taxes. But when people intentionally take illegal attempts to avoid paying the taxes are charged under the tax evasion penalties.

Here in this post, you will get to know about everything pertaining to the penalties of tax escaping.

What is Tax Evasion

Evading taxes using illegal means is a criminal offense in the eyes of the IRS. Tax avoidance can be broadly categorized in two sections. The first and the most common tax evasion is when many US residents hide the actual income and pay lesser taxes. Later on, after a thorough inspection by the IRS specialists, they are charged with the penalties for the huge due taxes that are left to be paid. The second category is strictly meant for those who intentionally escape paying taxes.

As a matter of fact, all the US business owners and citizens have the right to take proper steps for decreasing their taxes by including their loans, deductions, and the charity they have done so far. But that can only be done lawfully, under the surveillance of a tax attorney.

But, if someone intentionally and willfully avoids paying taxes is entering the realm of a crime. If you want to maintain a fair tax filing and tax payment, try to appoint a civil attorney to pay the taxes on time and avoid being charged with the tax evasion penalties.

The Criminal Tax Evasion Law by IRS

Here is the legal definition of the tax evasion statute and penalty located at the Sec.7201 of the IRS Code. It is clearly mentioned that any person who intentionally attempts to evade or overcome any compulsory tax or deny paying it will be guilty of the felony upon the conviction. Along with paying the penalties, the person must be ready to face the consequences of the punishment under the federal law.


American individuals that are proved with the charges of tax dodging are liable to pay the original amount of the income tax that is still unpaid. Alongside, they are also asked to pay the interests and the penalties decided for them. Depending on the severity of the charges, the federal tax court condemns the convicts with the felony convictions, criminal charges, imprisonment, and with substantial fines.

Prosecution Process

The CID (Criminal Investigation Division) of the IRS is appointed for the federal prosecution of those charged with the tax evasion penalties. It is the responsibility of the CID to investigate the case thoroughly and decide whether the case will be sent to the Tax division of the U.S Department of Justice for the trial.

This body of the United States Government with some of the finest judges handles the federal crimes. If you are charged with the tax avoidance, you will be presented in front of the jury that will charge you for committing the federal crime by escaping the taxes. According to the federal law, there is the six-year statute of limitations for the tax evasion that means the jury has six years from the moment of the crime has been committed by you and prosecutes you.

Besides, the judges of the US department will decide whether you will get an opportunity to get an attorney to present your case before the grand jury. If they don’t allow it, you will be arrested by the law enforcement authorities. On the next step, you can plea for the bail to the federal court. This is the high- time when you will be in need of an experienced criminal defense attorney reputed for defending several federal tax evasion crimes before.


If you are charged with the tax evasion crime and proved to be a guilty under the federal law, you can be sent for imprisonment for around five years and a fine within $100,000. The felony charges will destroy your social and professional reputation. The record of your crime of tax dodging will prevent you from getting a new job and will cause serious troubles in your business. You may also come across with various negative effects in your rights in other ways.


To avoid being charged with the serious criminal offense of tax avoidance, it is strongly recommended to file for the tax on time. If you are not aware of the process, consult a professional tax attorney immediately. If you are going through unfavorable circumstances for arranging the amount of your tax, contact an IRS executive right now and let him/her inform about your current financial instability. The professional will surely help you right away.

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