Originally from:
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
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CHAPTER 99
TAX FRAUD AND EVASION
Section
§ 99.01 Introduction
§ 99.02 Criminal Tax Statutes--Tax Evasion
§ 99.03 --False Tax Return
§ 99.04 --Failure to File
§ 99.05 Methods of Proof
§ 99.06 --Specific Items Method
§ 99.07 --Bank Deposits Method
§ 99.08 --Net Worth and Expenditures Method
§ 99.09 Practice Pointers
§ 99.01 Introduction
Tax fraud litigation is perhaps one of the most complex and esoteric
areas of the criminal law. At the same time, it is also the area most
frequently mishandled. This is, some suggest, because lawyers tend to
approach criminal tax cases as tax cases with criminal implications rather
than as criminal cases with tax implications. As a result, lawyers,
including experienced civil tax lawyers, have needlessly and repeatedly
made mistakes that have sent their clients to jail.
The consequences of attorney error can be severe. A client convicted
of tax evasion can be sentenced to five years in jail, fined $100,000
($500,000 in the case of a corporation), and assessed the costs of
prosecution. If the client is convicted of tax evasion for more than one
year, the sentences can be imposed consecutively. Further, the client
who is convicted is also subject to a 50 percent civil fraud penalty on any
understatement of taxes for the year in question.
There was a time when persons convicted of tax evasion did not go to
jail, but that time is long past. Under the Federal Sentencing Guidelines,
some form of incarceration is mandatory if the tax loss exceeds $2,000,
and a sentence of up to sixty-three months is possible if the tax loss is
very substantial. In short, a person convicted of a tax crime can expect to
go to jail.
Roger J. Magnuson is a Partner at Dorsey and Whitney, LLP, where he serves as Head of the National Strategic Litigation Group and has practiced since 1973. He has been recognized as one of the top trial lawyers in the United States by major national and international publications, including Chambers International Guide to American Lawyers, which profiles the top 500 trial lawyers in the United States, Best Lawyers in America, Who's Who in American Law, and Who's Who in America. Mr. Magnuson was also recognized by a Journal of Law and Politics' survey for Judge's Choice "Wins Most Cases."
Some high profile cases that he has litigated include representation of the Florida Senate in the Bush v. Gore election controversy in 2000; and representation of the Plaintiffs in the widely publicized and studied Mall of America case. For several years he has represented, among other persons and entities, the Minnesota Twins and Major League Baseball principals and players in litigation; and has litigated national and local cases in federal and state court venues. He has appealed before the Supreme Court in a number of cases; as well as the Minnesota Supreme Court. He has authored several articles and 7 books.
Richard A. Saliterman is a Principal in Saliternan & Siefferman P.C., a full-service firm in Minneapolis established in 1976. Mr. Saliterman is a leading expert on corporate business matters, and is the author of several publications on business start-ups, franchises, and trademarks. Mr. Saliterman is the former National Judge Advocate for the U.S. Navy League, based in Washington D.C.
Contributing Editor:
Amanda Chang
Contributing Authors:
Alecia Anderson
Seth Back
John Baker
Shannon Berg
Constatin Burachek
Benjamin Carpenter
Ryan Check
Carl Christensen
Peter Fear
Michael Frasier
Aaron Hall
Catherine Hanson
Paul Harman
Amy Ithlan
Michael Kern
Chris Kuhlman
Brett Larson
Joshua Lederman
Karen Lundquist
James Magnuson
Jennifer Mead
Rao Menier
Heidi Miller
Rachael Moxon
Oliver Nelson
Scott Peitzer
Mitchell Skinner
Jonathan Stechmann
Lael Weinberger
Jonathan Wilson
Alex Zumbulyadis
