federal crime that can be committed by any type of individual, business or corporation, tax evasion involves any illegal attempts to avoid paying taxes. Whether these unlawful acts take the form of tax avoidance, fraud, or noncompliance, they are considered direct offenses against the federal government and will therefore subject alleged offenders to criminal proceeding in a federal court. Common examples of the unlawful acts that can subject individuals or businesses to formal charges include:

  • Declaring less income than earned
  • Overstating deductions
  • Misrepresentations

According to Title 26 of the U.S. Code § 7201, a person who is found to have willfully attempted to evade or defeat taxes can be convicted of a felony offense. Standard tax evasion penalties can include fines up to $100,000 for individuals and up to $500,000 for corporations, as well as incarceration for up to 5 years. In addition, defendants may also face additional federal tax crimes and penalties, including:

  • Failure to file returns, supply information or pay tax ( 26 U.S.C. § 7203)
  • Fraud and false statements (26 U.S.C. § 7206)
  • Failure to collect or pay over tax (26 U.S.C. § 7202)
  • Structuring taxes to evade reporting (26 U.S.C. § 5324)
  • Conspiracy allegations

Legal proceedings that concern federal tax crimes will nearly always begin with IRS audits or criminal federal investigations. These investigations can be incredibly invasive and may border on the infringement of your rights. Retaining legal counsel early in this process can ensure that your rights are protected and that your defense will be worked up to its full potential.


Tax evasion and federal tax crime cases require an extensive working knowledge of the U.S. tax code, applicable criminal laws and experience in navigating through the federal court system. At Okabe & Haushalter, our talented attorneys apply their collective efforts to cases and fight as a team to defend the clients we represent. Having been named Leaders in Criminal Defense byNewsweek Magazine and having earned an impressive collection of professional awards and achievements, our firm is more than qualified to deliver the results you need. Contact Okabe & Haushalter today.

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