Tax evasion is the willful, intentional act of failing to report income, falsifying returns, or taking deliberate steps to conceal taxable income from federal or state authorities. It is a felony offense. Under 26 U.S.C. §7201, federal tax evasion carries up to five years in prison and fines of up to $250,000. New York state tax fraud (Tax Law §1806) carries its own separate penalties.

The critical distinction is between tax evasion and a good-faith tax dispute. Making an honest mistake, taking an aggressive-but-legal deduction, or disagreeing with the IRS about how the tax law applies to a particular transaction is not a crime. Tax evasion requires willfulness — the intentional decision to violate a known legal duty. Prosecutors bear the burden of proving that intent, and it is not always easy to establish.

Tax cases involving international transactions, foreign accounts, or complex business structures are particularly susceptible to mischaracterization.

Our background in international taxation and complex business structures positions us well to handle these matters — both in assessing what the law actually requires and in presenting a clear, credible defense. Where the government has overstated the nature of the conduct, we build the case for good-faith reliance, ambiguous legal guidance, or legitimate business purpose. Where civil resolution is available, we pursue it aggressively to avoid criminal exposure.