Lexington Tax Fraud Defense Attorney
Have you been charged with tax fraud?
The first thing you need to do after you’ve been arrested for tax fraud, is to call a Cooley, Iuliano, Robey PLLC fraud attorney at 859-636-6803. Each of our partners is a member of the National Association of Criminal Defense Lawyers, as well as the Kentucky Bar Association.
Our skilled tax fraud defense attorneys are always prepared to do a full investigation and defend your case, all while protecting your rights from the prosecution while they pursue their tax fraud case against you. Our tax fraud law firm and tax fraud attorneys are going to make certain that the Commonwealth of Kentucky is held to their burden of providing their case beyond a reasonable doubt.
What is tax fraud?
As with many crimes, including fraud, the intent in tax fraud is what matters. Kentucky punishes those who defraud the government, and it does it through two laws specifically: The Uniform Civil Penalty Act in section 131.0101(10) & 131.180 of the Kentucky Revised Statutes, and then with KRS 131.550 Assessment against transferee of a fraudulent conveyance made with intent to hinder or evade collection of tax due from transferor. In cases of tax fraud in Kentucky, it is the Department of Revenue, not the IRS, which deals with federal taxes.
The Uniform Civil Penalty Act punishes a form of tax evasion where a taxpayer purposefully (the intent) avoids paying or underpaying taxes on their income, properties, funds, or any other type of wealth or taxable good and service. Tax fraud is a form of tax evasion. The Kentucky Revised Statutes lays out the penalties for this type of fraud, which varies depending on how much is owed and for how much time.
“Assessment against transferee of a fraudulent conveyance made with intent to hinder or evade collection of tax due from transferor” applies to the crime of selling, giving away, or transfering property, funds, or any type of wealth with the intent of avoiding having to pay taxes on them.
Remember, Kentucky punishes as a crime tax evasion that is intentional, not accidental. Although you might still face fines for paying your taxes late, having that be charged as a crime depends on if that was an accident or with the intention of avoiding taxes. An audit of your tax returns will determine this. Don’t let an audit turn into a criminal investigation and pay your taxes on time and fully.
If you are being accused of a tax fraud crime, finding experienced professionals like Lexington ky criminal defense attorney or a tax fraud lawyer immediately after your arrest is where you should start in taking control of your future.
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Types of Tax Fraud Charges & Penal Codes in Kentucky
White collar crimes in Kentucky are non-violent offenses that involve fiscal matters such as fraud, money laundering, tax evasion, insider trading, identity theft and others, normally carried out by people in business or government. Being accused of a white collar crime is enough to ruin your reputation and your livelihood, which is why you would want a white collar crime lawyer or tax fraud lawyer as soon as you’re accused.
The provisions of this section shall be known as the “Uniform Civil Penalty Act.” Penalties to be assessed in accordance with this section shall apply as follows unless otherwise provided by law:
(1) Any taxpayer who files any return or report after the due date prescribed for filing or the due date as extended by the department shall, unless it is shown to the satisfaction of the department that the failure is due to reasonable cause, pay a penalty equal to two percent (2%) of the total tax due for each thirty (30) days or fraction thereof that the report or return is late. The total penalty levied pursuant to this subsection shall not exceed twenty percent (20%) of the total tax due; however, the penalty shall not be less than ten dollars ($10).
(2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to pay the tax computed due on a return or report on or before the due date prescribed for it or the due date as extended by the department or, excluding underpayments determined under KRS 141.044 or 141.305, fails to have timely paid at least seventy-five percent (75%) of the tax determined due by the department shall, unless it is shown to the satisfaction of the department that the failure is due to reasonable cause, pay a penalty equal to two percent (2%) of the tax not withheld, collected, or timely paid for each thirty (30) days or fraction thereof that the withholding, collection, or payment is late. The total penalty levied pursuant to this subsection shall not exceed twenty percent (20%) of the tax not timely withheld, collected, or paid; however, the penalty shall not be less than ten dollars ($10).
(3) If any taxpayer fails or refuses to make and file a report or return or furnish any information requested in writing by the department, the department may make an estimate of the tax due from any information in its possession, assess the tax at not more than twice the amount estimated to be due, and add a penalty equal to five percent (5%) of the tax assessed for each thirty (30) days or fraction thereof that the return or report is not filed. The total penalty levied pursuant to this subsection shall not exceed fifty percent (50%) of the tax assessed; however, the penalty shall not be less than one hundred dollars ($100) unless the taxpayer demonstrates that the failure to file was due to reasonable cause as defined in KRS 131.010(9). This penalty shall be applicable whether or not any tax is determined to be due on a subsequently filed return or if the subsequently filed return results in a refund.
(4) If any taxpayer fails or refuses to pay within sixty (60) days of the due date any tax assessed by the department which is not protested in accordance with KRS 131.110, there shall be added a penalty equal to two percent (2%) of the unpaid tax for each thirty (30) days or fraction thereof that the tax is final, due, and owing, but not paid.
(5) Any taxpayer who fails to obtain any identification number, permit, license, or other document of authority from the department within the time required by law shall, unless it is shown to the satisfaction of the department that the failure is due to reasonable cause, pay a penalty equal to ten percent (10%) of any cost or fee required to be paid for the identification number, permit, license, or other document of authority; however, the penalty shall not be less than fifty dollars ($50).
(6) If any tax assessed by the department is the result of negligence by a taxpayer or other person, a penalty equal to ten percent (10%) of the tax so assessed shall be paid by the taxpayer or other person who was negligent.
(7) If any tax assessed by the department is the result of fraud committed by the taxpayer or other person, a penalty equal to fifty percent (50%) of the tax so assessed shall be paid by the taxpayer or other person who committed fraud.
(8) If any check tendered to the department is not paid when presented to the drawee bank for payment, there shall be paid as a penalty by the taxpayer who tendered the check, upon notice and demand of the department, an amount equal to ten percent (10%) of the check. The penalty under this section shall not be less than ten dollars ($10) nor more than one hundred dollars ($100). If the taxpayer who tendered the check shows to the department’s satisfaction that the failure to honor payment of the check resulted from error by parties other than the taxpayer, the department shall waive the penalty.
(9) Any person who fails to make any tax report or return or pay any tax within the time, or in the manner required by law, for which a specific civil penalty is not provided by law, shall pay a penalty as provided in this section, with interest from the date due at the tax interest rate as defined in KRS 131.010(6).
(10) The penalties levied pursuant to subsection (4) of this section shall apply to any tax assessment protested pursuant to KRS 131.110 to the extent that any appeal of the assessment or portion of it is ruled by the Kentucky Claims Commission or, if appealed from, the court of last resort, as not protested, appealed, or pursued in good faith by the taxpayer.
(11) Nothing in this section shall be construed to prevent the assessment or collection of more than one (1) of the penalties levied under this section or any other civil or criminal penalty provided for violation of the law for which penalties are imposed.
(12) All penalties levied pursuant to this section shall be assessed, collected, and paid in the same manner as taxes. Any corporate officer or other person who becomes liable for payment of any tax assessed by the department shall likewise be liable for all penalties and interest applicable thereto.
If you or someone you care about has been charged with a tax fraud charge in Kentucky, contact our reputable criminal defense lawyers or tax fraud lawyers as soon as possible by calling 859-636-6803.
(1) When the Department of Revenue reasonably believes that any taxpayer has divested himself by gift, conveyance, assignment, transfer of, or charge upon any property, whether real, personal, tangible or intangible, with the intent to hinder or evade the collection of any tax assessed or to be assessed by the department or declared by the taxpayer on a return filed with the department, any transferee of such property may be assessed by the Department of Revenue an amount equal to the lesser of the amount of tax assessed against the transferor taxpayer or the fair market value of the property so transferred. However, no assessment shall be made pursuant to this section against a transferee who takes the property for full and valuable consideration in money or money’s worth, unless it appears that such transferee had notice of the intent of the transferor taxpayer to hinder or evade the collection of any tax.
(2) Any assessment made by the Department of Revenue against a transferee pursuant to subsection (1) of this section is, except as provided in this section, subject to the same provisions and limitations as in the case of the taxes for which the liabilities were incurred.
(3) The period of limitation for assessment of any liability against a transferee pursuant to subsection (1) of this section shall be as follows:
(a) In the case of an initial transferee, within one (1) year after the expiration of the period of limitation for assessment against the transferor taxpayer; and
(b) In the case of the liability of a transferee of a transferee, within one (1) year after the expiration of the period of limitation for assessment against the preceding transferee, but not more than three (3) years after the expiration of the period of limitation for assessment against the initial transferor taxpayer.
(4) The notice of any assessment against a transferee made pursuant to subsection (1) of this section shall be either given to the transferee in person or sent by mail to such transferee’s last known address.
If you or someone you care about has been charged with a tax fraud charge in Kentucky, contact our reputable criminal defense lawyers or tax fraud lawyers as soon as possible by calling 859-636-6803.
Penalties in Tax Fraud Cases
Penalties for white collar crimes could range from very expensive fines to long prison sentences. In general, Even if the most common punishment is time in minimum-security prisons, there’s no reason it can be something even harsher, especially if substantial amounts of money are involved. White collar crimes like tax fraud, credit card fraud, insider trading and fraud against the government are harshly punished and sometimes even handed over to federal prosecutors. For tax fraud cases, depending on their seriousness, and whether the crime is classified as a misdemeanor or a felony is detailed in their individual statutes in Kentucky Revised Statutes.
Take tax fraud offenses and allegations seriously and get professional legal representation in an expert local tax fraud lawyer as soon as possible to see to your case. A competent tax fraud defense attorney can get your case dismissed, charges filed against you dropped, or fight for an expungement of your misdemeanor conviction altogether.
Felony
In the US, a felony is the most serious type of crime, and hence, they offer the most serious punishments, with years in prison. They are divided (like misdemeanors as well) into classes. The imprisonment terms for each class of this offense are;
- Class A – 20 to 50 years, or even life imprisonment,
- Class B – 10 to 20 years,
- Class C – 5 to 10 years, and
- Class D – 1 to 5 years
All serious crimes, except murders (they have their own punishments), are classified as felonies.
It’s also important to point out that former convictions of this degree matter. If district court investigations and records show you are a “persistent offender,” then it’s very likely you’ll be facing a longer prison term vs someone guilty of the same crime without records of a prior felony conviction. (Ky. Rev. Stat. Ann. § 532.080 (2019 ).). If this is the case, it is advised for you to share this information with your tax fraud defense lawyer at the earliest to avoid tax fraud charges.
A person found guilty of a felony in states like Kentucky will also need to pay a fine costing between 1,000 dollars and 10,000 dollars. Or, if it applies, double any gain from committing the offense. In the event that it does, the district court usually orders whichever amount is greater to be paid (Ky. Rev. Stat. Ann. § 534.030 (2019 ).).
It’s difficult facing offenses as serious as this alone, especially since these have long-lasting consequences on a person’s life once convicted. Which is why hiring expert tax fraud defense attorneys with adept insights and resources are essential. It’s also good advice to hire tax fraud lawyers or tax fraud attorneys who pay close attention to create a great working attorney client relationship with the people and the content of the cases they take on. Experienced tax fraud attorneys or tax fraud lawyers will know what to expect including with the best way to protect your rights, or avoid a conviction altogether.
Federal Money Laundering
In the United States, More than other crimes, white collar offenses are usually prosecuted by federal authorities. The FBI is responsible for processing those accused of federal white-collar crimes. Federal white-collar charges result when they transpire on or against federal property and institutions, but they are mostly a federal offense because they normally involve financial institutions and businesses across several states. Some of these offenses include, but are not limited to, money laundering, tax evasion, election law violations, embezzlement, and several types of fraud, like mortgage, bank, health care, mass marketing, securities, and commodities, and corporate fraud. People in business or government are the vast majority of those arrested for white collar crimes. These are not victimless crimes.There can be billions of dollars at stake, along with the livelihoods of thousands of people. The penalties for white -collar crimes can range from a simple fine to jail time of a few years. The punishment will depend on the extent of the money involved, people affected, and even the social implications of your crime. You will immediately need a federal tax fraud lawyer if you are facing tax fraud charges in Kentucky or anywhere else.
You need an experienced lawyer that specializes in criminal tax fraud defense
All of our criminal tax fraud attorneys at Cooley Iuliano Robey, PLLC are members of the National Association of Criminal Defense Lawyers as well as the Kentucky Bar Association, with decades of experience in matters of tax fraud charges and tax fraud defenses or other practice areas. We value the best interest of every client, above all, and with our insights about law, we can create new defense opportunities in your case, no matter how minor. When it comes to tax fraud crimes, you need tax fraud attorneys who will fight for your constitutional rights, and start by doing an evaluation of every evidence and detail of your case, no matter how inconsequential they may be. We will then create the best defenses in your trial and strive to avoid the harshest sentence or any penalties at all.
Free Consultation & Case Review from our experienced tax fraud lawyers
At CIR Legal, our tax fraud attorney’s tax fraud defense services include offering free consultation and case review to potential clients or otherwise. Our tax fraud attorneys have fought and will always strive to fight for the rights of every defendant in the state of Kentucky, no matter the type of offense. Call our law office at 859-636-6803 or fill out our form for a free consultation, be it pm or am.
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