Los Angeles Tax Evasion Attorney

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If you are under investigation or facing charges for tax evasion, you are likely feeling overwhelmed and unsure of your next steps. The consequences of a conviction can be severe, including heavy fines, restitution, and even prison time. At Stephen G. Rodriguez & Partners, our experienced Los Angeles tax evasion lawyers are here to protect your rights, guide you through the legal process, and work toward the best possible outcome for your case.

Contact us today at (213) 481-6811  for a confidential consultation.

What is Tax Evasion?

Tax evasion occurs when an individual or business deliberately avoids paying taxes that are legally owed. This is different from an honest mistake, such as a miscalculation on a tax return. Tax evasion requires intent—meaning prosecutors must prove that the accused knowingly took steps to conceal income, falsify records, or misrepresent financial information to reduce their tax liability.

Both California state and the federal government aggressively pursue tax evasion cases. Agencies such as the California Franchise Tax Board (FTB), the Internal Revenue Service (IRS), and the California Department of Tax and Fee Administration (CDTFA) often investigate these cases and have broad authority to examine financial records, bank statements, and business transactions.

Common Examples of Tax Evasion

Tax evasion can take many forms. Some of the most common examples include:

• Underreporting Income – Failing to report cash earnings, side jobs, or entire revenue streams.
• Inflating Deductions or Credits – Claiming false business expenses, charitable donations, or tax credits.
• Hiding Money in Offshore Accounts – Concealing assets or income in foreign bank accounts.
• Failure to File Tax Returns – Not filing tax returns at all, particularly when income exceeds filing thresholds.
• Improper Business Structuring – Misclassifying employees as independent contractors or misusing shell companies to avoid payroll or corporate taxes.
• Double-Entry Bookkeeping – Keeping one set of records for personal or business use and another for tax authorities.

Even small discrepancies can trigger audits, and if investigators believe you acted intentionally, the case can escalate to criminal charges.

State & Federal Tax Evasion Penalties

The penalties for tax evasion in Los Angeles and throughout California are extremely serious. Depending on the amount of taxes owed and the circumstances of your case, you may face:

Federal Penalties

• Up to 5 years in federal prison for felony tax evasion
• Fines of up to $100,000 for individuals or $500,000 for corporations
• Restitution payments to cover unpaid taxes, interest, and penalties

California State Penalties

• Up to 3 years in state prison for felony tax evasion
• Fines of up to $20,000
• Additional civil penalties, including accuracy-related penalties, fraud penalties, and late filing penalties

In addition to fines and incarceration, a conviction can cause long-term damage to your reputation, career, and professional licenses.

Legal Defenses Against Tax Evasion Charges

Every tax evasion case is unique, and a strong defense depends on the specific facts of your situation. A knowledgeable Los Angeles tax evasion lawyer can explore several possible defenses, including:

• Lack of Intent – Prosecutors must prove that you knowingly attempted to avoid paying taxes. Honest mistakes, miscalculations, or reliance on a tax preparer may not rise to the level of criminal intent.
• Insufficient Evidence – Tax laws are complex, and the government must demonstrate beyond a reasonable doubt that evasion occurred. Weak or incomplete evidence can be challenged.
• Reliance on Professional Advice – If you acted on the guidance of an accountant, tax preparer, or financial advisor, you may not have knowingly committed fraud.
• Constitutional Violations – If investigators violated your constitutional rights through unlawful searches, seizures, or questioning, evidence may be suppressed.
• Negotiated Settlements – In some cases, negotiating with the IRS or California tax agencies to settle tax liabilities can help you avoid criminal prosecution.

At Stephen G. Rodriguez & Partners, we carefully analyze financial records, identify weaknesses in the prosecution’s case, and build a strategic defense tailored to your circumstances.

Tax Evasion FAQs

Is tax evasion the same as tax avoidance?

No. Tax avoidance refers to legally minimizing your tax liability through deductions, credits, and strategic planning. Tax evasion, however, involves intentional deception to avoid paying taxes and is illegal.

Can I face charges for not filing my taxes?

Yes. Failing to file tax returns can lead to both civil penalties and criminal charges, especially if the government believes you intentionally avoided filing to evade taxes.

How far back can the IRS or California investigate tax evasion?

The IRS typically has six years to pursue criminal tax evasion charges, but in cases of fraud, there is effectively no statute of limitations. California state agencies also have extended timelines in cases involving fraud.

Do I need a lawyer if I’m just being audited?

Yes. While audits may begin as civil matters, they can escalate into criminal investigations if auditors suspect intentional wrongdoing. Having a Los Angeles tax evasion lawyer early in the process can help protect your rights.

Can I settle my tax evasion case without going to court?

In many cases, yes. Our Los Angeles tax evasion attorneys can negotiate settlements, payment plans, or reduced penalties with the IRS or state tax agencies. However, this depends on the specifics of your case.

Speak With a Los Angeles Tax Evasion Attorney Today

Facing tax evasion charges in Los Angeles is a serious matter that requires immediate legal attention. The sooner you involve an experienced defense attorney, the better your chances of protecting your rights and securing a favorable resolution.

At Stephen G. Rodriguez & Partners, we have the knowledge, resources, and determination to handle even the most complex tax evasion cases. Whether you are under investigation, responding to an audit, or already charged, our team will stand by your side every step of the way.

Call (213) 481-6811 now to connect with a tax evasion lawyer in Los Angeles who can help you move forward with confidence—leaving behind uncertainty and stress as you take control of your situation.