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Easter & DeVore – Knoxville’s Trusted Tax Evasion Defense Attorneys

Tax Evasion Attorney in Knoxville, TN

A person’s hands filling out tax forms with a pen and using a black calculator.

Allegations of tax evasion can have serious legal consequences, including significant fines, asset seizure, and even imprisonment. This is not just a financial dispute, but a white-collar crime that can threaten your freedom and reputation. The government invests significant resources in proving its case, so you need a team of skilled lawyers who can match their intensity with a sophisticated legal strategy.

If you are under investigation or have been charged with tax evasion by the Internal Revenue Service (IRS) or the Tennessee Department of Revenue, it is crucial to have legal representation. Easter & DeVore provides aggressive and strategic defense for individuals and businesses in Knoxville, Tennessee facing tax evasion charges.

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    What Is Tax Evasion?

    Tax evasion is a deliberate attempt to avoid paying taxes by underreporting income, overstating deductions, hiding assets, or not filing tax returns at all. It is a criminal offense under federal and state laws. The main difference between tax evasion and civil tax issues is the intention of the person involved. Prosecutors must prove that the taxpayer knew they were breaking the law and intentionally failed to pay taxes. This element of intentional wrongdoing is the main focus of any tax evasion case.

    Common examples of tax evasion include:

    • Failing to report income from self-employment, cash businesses, or side jobs.
    • Claiming false or inflated deductions for personal expenses disguised as business costs.
    • Using offshore accounts, shell companies, or nominee entities to hide assets and income.
    • Filing false tax returns with deliberate misstatements.
    • Structuring transactions to avoid currency transaction reporting thresholds.
    • Paying employees in cash “off the books” to avoid payroll tax obligations.
    • Keeping a double set of books to conceal true business income.

    The penalties for tax evasion can be severe, and a conviction may lead to significant fines, interest on unpaid taxes, and up to five years in federal prison per count. Additionally, a felony tax evasion conviction can have lifelong collateral consequences, such as loss of professional licenses, difficulty finding employment, and the stigma of a criminal record that may follow you forever.

    • I had a pretty serious problem with the irs and back taxes. They took the lead and walked me through a long process and exceeded my expectations all the way around! I could not be happier with the outcome! They were super professional and easy to communicate with! I would recommend them to everyone that is in serious IRS trouble!

      Some


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    IRS and TDOR Investigations

    Tax evasion investigations can begin in several ways, including:

    • Random audits that uncover suspicious activity indicating a pattern of deceit.
    • Whistleblower tips from disgruntled business partners, former employees, or ex-spouses.
    • Red flags from tax return inconsistencies or information returns (e.g., 1099s, W-2s) that don’t match filings.
    • Information sharing between agencies, such as data from a state audit triggering a federal criminal referral.

    If the IRS or the Treasury Department of Revenue suspect criminal activity, they may refer your case to their Criminal Investigation Division (CID). This is a significant shift from civil investigation to criminal investigation. Special agents, who are federal law enforcement officers, will conduct interviews, execute search warrants and attempt to gather evidence of wrongdoing.

    You may be contacted for an “interview” or receive formal document requests. It is essential not to answer questions or provide records without consulting an experienced tax attorney first. Anything you say or provide can be used against you in court and seemingly innocent explanations could be misinterpreted as admissions of guilt.

    At Easter & DeVore, we swiftly work to assess the extent of the investigation, assert your constitutional rights, and engage in constructive dialogue with the appointed prosecutor or agent. Our aim is to settle the matter before official charges are brought, wherever possible, often by presenting evidence that exonerates you, demonstrating lack of criminal intent, or negotiating a civil settlement to prevent criminal prosecution.

    Defending Against Tax Evasion Charges

    Successfully defending against tax evasion requires a careful and nuanced approach that focuses on dismantling the prosecution’s case based on willful intent. In many cases, taxpayers may make honest mistakes due to poor record-keeping, misunderstandings of complex tax laws, or relying on incorrect professional advice. Other defenses may involve challenging the legal basis for the evidence collected, proving that the income in question came from a non-taxable source, or demonstrating that any errors were due to negligence, rather than criminal intent.

    Our firm works to:

    • Conduct a forensic review and analysis of all financial records to reconstruct transactions and identify legitimate explanations for discrepancies.
    • Identify weaknesses in the prosecution’s case, such as lack of direct evidence of intent, procedural errors in the investigation, or reliance on unreliable witnesses.
    • Engage with forensic accountants and tax experts to prepare alternative analyses that support your position.
    • Negotiate with the IRS or TDOR to resolve matters civilly through the submission of amended returns and payment of taxes, penalties, and interest in exchange for a decision not to pursue criminal charges.
    • Present evidence to support the absence of willful wrongdoing, including testimony from your CPA or tax preparer regarding advice given, evidence of medical or personal crises that affected your judgment, or documentation showing a pattern of filing complex returns in good faith.

    We represent clients throughout all stages of legal proceedings, from the initial “eggshell audit” (when a civil auditor suspects fraud) and grand jury proceedings, to post-indictment criminal trials and appeals. Our primary focus is always on minimizing legal risk and protecting your long-term interests, whether through pre-trial negotiations for a reduced charge or an aggressive “not guilty” verdict at trial.

    The Strategic Value of Early Intervention in Tax Evasion Cases

    When you become aware that there may be a potential criminal tax investigation against you, the clock starts ticking on the opportunity to shape the story and control the outcome. Early legal intervention can make all the difference between the case being closed by the agency and a public indictment that could be devastating.

    Our approach in these crucial early stages involves a thorough analysis of the government’s evidence, an assessment of your weaknesses, and the development of a response that addresses their concerns while vigorously defending your rights.

    We strive to demonstrate compliance and cooperation, undermining the accusation of criminal intent through controlled disclosures and strategic legal arguments presented directly to prosecutors who have the power to file charges. This pre-indictment advocacy plays a crucial role in securing favorable outcomes, preserving your freedom and reputation before the case even reaches a courtroom.

    • Sarah is the lawyer I worked with. Ms. Easter was phenomenal. I had no idea what I would need to do in order to get everything done or even where to start. She helped me along the way by making everything simple on my end. She is a great lawyer and will do right by you.

      Coby

    Why Immediate, Specialized Counsel is Non-Negotiable

    In tax evasion cases, the early stages of an investigation are crucial. Decisions made before charges are filed can often determine the final outcome of the case. A general criminal defense attorney may not have in-depth knowledge of tax procedures or the Internal Revenue Service (IRS)’s internal playbook or the nuanced arguments needed to convince a prosecutor or jury that the actions were a mistake and not a crime.

    Our dual expertise in high-stakes criminal defense and complex tax law gives us a significant advantage in these cases. We have specialized knowledge to navigate the complexities of both areas and provide our clients with the best defense possible.

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    Contact Easter & DeVore

    If you are currently under investigation or have been accused of tax evasion in Knoxville, Tennessee, it is important to seek legal assistance as soon as possible. The consequences of not taking action can be severe.

    Contact Easter & DeVore to schedule a confidential and urgent consultation today. We will begin assessing your case immediately, providing you with guidance on how to communicate with investigators and build a strong defense to protect your rights, assets, and future.

    Common Tax Evasion FAQ

    What is the difference between tax evasion and an honest mistake?

    The key difference is willful intent. An honest mistake or negligence is a civil issue, typically resolved with penalties and interest. Tax evasion is a criminal charge where the government must prove you intentionally acted to deceive and avoid paying taxes owed. We build defenses around this critical distinction.

    What triggers a criminal tax evasion investigation?

    Investigations often start from an audit that reveals patterns suggesting intent, such as consistent underreporting, hidden accounts, or false documents. Tips from informants, referrals from other agencies, or conspicuous lifestyle vs. reported income discrepancies can also trigger an IRS Criminal Investigation (CI) or TDOR probe.

    Should I speak to IRS Special Agents if they contact me?

    No. You have the right to remain silent and the right to an attorney. Anything you say can be used against you. Politely decline to answer questions and immediately contact our firm. We will communicate with investigators on your behalf to protect your rights from the outset.

    Can I be charged if I relied on a bad accountant?

    Possibly, but reliance on a professional advisor can be a strong defense against the “willfulness” required for a criminal conviction. We will thoroughly investigate the advice you received and work to demonstrate you lacked criminal intent, aiming to resolve the matter civilly.

    What are the potential penalties if convicted?

    Tax evasion is a felony. Penalties include substantial fines (up to $250,000 for individuals), payment of all back taxes with interest, and prison time (up to 5 years per count). The stakes demand an immediate and vigorous criminal defense strategy.

    Is it possible to avoid criminal charges after an investigation starts?

    Yes. Early, strategic intervention by a skilled attorney can sometimes persuade the government not to file criminal charges, opting for a civil resolution instead. This involves presenting exculpatory evidence, negotiating, and demonstrating cooperation to mitigate the perceived need for prosecution.

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