While they may not be prosecuted as often as other offenses, tax crimes can still carry very serious consequences for defendants convicted of tax evasion, failure to file a return, and other tax crimes.

Pennsylvania prosecutes tax crimes selectively, typically only focusing on cases involving multiple offenses and large sums. For minor tax violations, civil penalties are typically assessed. Law enforcement might investigate a particular person for tax crimes, including filing false or late returns over several years, concealing large assets, and submitting false or fraudulent documents that don’t match the additional information tax agencies have on file.

You can call the Liberty Law Team’s Philadelphia white-collar crimes attorneys today at (215) 826-3314 for a free case review.

How Often Does Pennsylvania Prosecute Tax Crimes?

Tax crimes are among the most common white-collar offenses in Pennsylvania, but that does not mean they are prosecuted at very high rates.

In general, Pennsylvania prosecutes tax crimes somewhat selectively. Otherwise, the Pennsylvania Department of Revenue may levy fines for late filing or other violations.

Before making an arrest and filing official charges for tax crimes, law enforcement agencies typically spend considerable time building and preparing a case and may focus on cases involving large-scale tax evasion, employment tax fraud, or other serious offenses.

Pennsylvania only prosecutes state tax crimes. For federal offenses, defendants are prosecuted in federal court. Though these trials can also take place in Pennsylvania, they are not prosecuted by the state.

What Might Lead to Prosecution for Tax Crimes in Pennsylvania?

Tax crimes are typically prosecuted on a selective basis. Because of this, ongoing offenses spanning several years are most likely to be investigated further and potentially prosecuted than one-time mistakes.

Filing False or Late Returns Across Multiple Years

While you may not face charges for filing your taxes late once or twice, if you file false returns or fail to file your taxes for several years in a row, you might be investigated and could face charged. Failing to file your taxes at the state or federal level can be a major red flag for law enforcement agencies.

Concealing Assets

Concealing assets and not reporting them on your taxes can also trigger an investigation and may lead to criminal charges. Disclosures from foreign banking institutions, major income discrepancies, and public and legal records can alert law enforcement to potential tax crimes worthy of prosecution.

Submitting False Documents

Submitting false or fraudulent documents is very serious. It may prompt a closer look into your financials by law enforcement authorities. Computers and investigators may detect fraudulent W-2, 1099, and W-8BEN forms, which could lead to criminal charges.

How Are Tax Crimes Prosecuted in Pennsylvania?

Tax crimes are prosecuted as misdemeanors or felonies in Pennsylvania, depending on the offense. Any tax crimes involving your federal return and reporting to the IRS are prosecuted at the federal level and can lead to federal charges.

Misdemeanor Charges

For willful failure or neglect to file a tax return when required, knowingly submitting a fraudulent return, or refusal to pay imposed tax, interest, additions, or penalties, you could face a misdemeanor charge in Pennsylvania.

If tax crimes are prosecuted as misdemeanors, defendants face up to one year in prison and $1,000 in fines per charge. Although misdemeanor tax crimes aren’t often prosecuted in criminal court, if this does happen to you, you need an attorney to help.

For filing a fraudulent return with the intent to defraud the Commonwealth of Pennsylvania, you could face up to 3 years in prison and $2,000 in fines.

Felony Charges

Some tax crimes are even charged as felonies, such as payroll tax evasion, which is a form of embezzlement. Theft by failure to make required disposition of funds is charged as a third-degree felony when $2,000 to $100,000 is involved, a second-degree felony when $100,000 to $500,000 is involved, and a first-degree felony when $500,000 or more is involved.

Falsifying business records is another common felony tax crime in Pennsylvania.

Federal Charges

If you violate any aspect of the federal tax code, you may face federal charges for a tax offense, not state charges. Even if the trial takes place in Pennsylvania, the case will be prosecuted by the federal government, not a state prosecutor.

Federal charges generally carry more serious consequences than state charges. Federal prosecutors rarely bring charges for large-scale tax crimes and other offenses unless they are confident they can secure a conviction.

What Should You Do if You Are Prosecuted for Tax Crimes in Pennsylvania?

Being arrested and prosecuted for tax crimes of any scale can be confusing, and many individuals do not know how best to respond.

Get a Lawyer

If you are being prosecuted for a tax crime in Pennsylvania, you should first hire a criminal defense attorney. You shouldn’t try to work with prosecutors by Pennsylvania white-collar crimes attorneys and negotiate a deal or admit to certain acts. Instead, you should remain silent and let our lawyers talk to the prosecution about the case.

Prepare Your Defense

When preparing your defense against tax crime charges, our lawyers can challenge the prosecution’s evidence of your willfulness and intent, which are typically key to proving the charges. Relying on an untrustworthy tax professional or making a simple mistake with no fraudulent intent behind it are common explanations for certain behavior.

Consider a Plea

If you are being prosecuted for more serious tax crimes, such as tax evasion, the prosecution most likely spent time building a strong case before filing the charges. We can evaluate the strength of the prosecution’s case and may help you explore plea deals that could allow you to avoid trial and mitigate the consequences.

Call Us if You Are Being Prosecuted for Tax Crimes in Pennsylvania

For help with your case from the Liberty Law Team, call our Pennsylvania white-collar crimes attorneys now at (215) 826-3314.