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

Tax Fraud Attorney in Knoxville, TN

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

Facing allegations of tax fraud can be a frightening experience, especially when your finances, reputation, and freedom are at risk. The Internal Revenue Service (IRS) and the Tennessee Department of Revenue (TDOR) are known for their aggressive approach to investigating and prosecuting suspected tax fraud cases. These agencies have vast resources and sophisticated forensic tools at their disposal, and they are committed to pursuing criminal charges in order to protect the integrity of the tax system.

In this high-stakes environment, it is crucial to have a skilled and experienced attorney on your side. An attorney who not only understands tax law deeply but also has the ability to navigate the complex legal landscape is essential. Easter & DeVore’s team of attorneys are dedicated to providing knowledgeable and strategic defense for clients accused of tax fraud in the Knoxville area.

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    We understand the challenges facing individuals and businesses during difficult times and commit to protecting their rights and interests. We know that accusations of fraud can significantly impact a person’s reputation and take our responsibility as attorneys very seriously to provide thorough and dedicated defenses. Our goal is to protect our clients’ freedom and clear their names.

    What Is Tax Fraud?

    Tax fraud is an intentional act of deception by individuals or businesses to avoid paying taxes that are legally owed. This is considered a criminal offense and can lead to severe penalties, including large fines and jail time. Unlike civil tax violations, which can occur due to mistakes or negligence, tax fraud involves a deliberate attempt to mislead the tax authorities. It is essential to understand that tax fraud requires proof that the individual or business knowingly acted with the intention of avoiding tax payments. The prosecution must prove beyond a reasonable doubt that the defendant acted willfully, meaning they consciously violated their legal obligations. This is a challenging task for the prosecution, and it is often best to focus on challenging their evidence of intent as a defense strategy.

    It is also crucial to differentiate between tax fraud and tax evasion, as not all cases of tax evasion involve fraud. While tax evasion can involve other forms of illegal activity, such as underreporting income or claiming false deductions, not all instances of fraud necessarily involve tax evasion or avoidance. Fraud can also include schemes to obtain fraudulent refunds or assisting others in submitting false returns.

    Examples of tax fraud include:

    • Filing a false or fraudulent tax return with deliberate inaccuracies.
    • Underreporting income or failing to report income from cash transactions, offshore accounts, or digital assets.
    • Claiming false deductions, business expenses, or credits (such as the Earned Income Tax Credit) you know you are not entitled to.
    • Keeping two sets of books: one for internal use reflecting true income and another altered set for tax purposes.
    • Using fake Social Security numbers or dependent information.
    • Altering, forging, or destroying financial records or documents to conceal income.

    Even seemingly minor actions, if considered intentional, can result in criminal tax fraud charges. The government often looks for patterns in behavior over multiple tax years to determine intent, turning isolated mistakes into a story of deliberate deception.

    • This firm is awesome! 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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    Signs You May Be Under Investigation

    Tax fraud investigations often start quietly and can take months or even years before formal charges are brought. Unlike a civil audit, a criminal investigation is often conducted in secret. You might not receive any communication from the Criminal Investigation Division (CID) until they have gathered significant evidence through subpoenas, informants, and undercover operations. Some signs that you might be under investigation include:

    • Receiving a summons or subpoena for financial records
      Being contacted by IRS or TDOR criminal investigators
    • Unusual audit activity or in-depth questions during a review
    • Notification of a referral to the IRS Criminal Investigation Division (CID)

    If you suspect that you are being investigated, it is important to take certain steps to protect your rights. Do not speak to investigators or provide any documents without consulting a lawyer. Any information you provide could be used against you in court. Politely refuse to answer questions and explain that you will only talk to your lawyer. This is your legal right and does not imply that you have committed any crime.

    Easter & DeVore has a team of experienced lawyers who can help protect your rights at the start of an investigation. We can conduct confidential inquiries to find out about the status of the case and, if needed, establish direct communication with prosecutors or investigators to try to influence the outcome before it escalates into an indictment.

    Legal Defense Against Tax Fraud Charges

    Successfully defending against tax fraud allegations requires a deep understanding of tax law, financial documentation, and criminal procedure. Our firm works with forensic accountants and tax professionals to analyze your records, challenge the government’s claims, and build a strong defense.

    Key defenses against tax fraud may include:

    • Demonstrating lack of intent to defraud
    • Proving the alleged error was due to negligence or misunderstanding
    • Highlighting reliance on incorrect professional advice
    • Exposing flaws or inaccuracies in the government’s case

    When appropriate, we may also pursue civil resolutions or negotiate to reduce criminal charges to lesser offenses.

    Penalties for Tax Fraud

    The consequences of a tax fraud conviction are severe. Federal law allows for penalties of up to $250,000 in fines for individuals and up to five years in prison for each count of fraud. In addition to criminal penalties, the IRS or TDOR may impose civil penalties, back taxes, and interest.

    Our goal is to minimize or eliminate these consequences through strategic negotiation, litigation, and strong legal advocacy.

    • 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 Choosing Easter & DeVore Makes a Critical Difference

    Tax fraud defense is a specialized field that requires an attorney with the ability to sit across from a forensic accountant, debate the treatment of the cost of goods sold, and stand before a jury to compellingly explain why their actions were not criminal. Our attorneys have this dual expertise and a track record of successfully dissecting government financial reconstructions and challenging the methods of special agents.

    We present our clients as individuals caught up in a complex web, not as criminals, and are familiar with the strategies of both Nashville TDOR enforcement divisions and IRS CID agents in the Eastern District of Tennessee. This knowledge allows us to anticipate and counter these strategies.

    Learn More About Tax Law

    Contact Easter & DeVore

    If you are under investigation or have been accused of tax fraud in Knoxville, Tennessee, it is important to contact Easter & DeVore as soon as possible. Time is of the essence, and early intervention can significantly affect the outcome of your case, potentially preventing any charges from being filed.

    Do not wait for a formal accusation or for federal agents to knock on your door. We offer experienced legal representation and will fight hard to protect your future, freedom, and reputation. Call us now to arrange a confidential and urgent consultation. We will listen to your story, explain the current situation you are in, and begin developing a powerful and proactive defense strategy that you need and deserve.

    Common Tax Fraud FAQ

    What is the difference between tax fraud and tax evasion?

    These terms are often used interchangeably in criminal law. Both are felonies requiring proof of willful intent to deceive tax authorities. “Tax fraud” broadly covers intentional deceit (like false deductions), while “tax evasion” often refers to the specific act of intentionally avoiding a tax assessment or payment. The defense strategy for both is similar.

    What triggers a tax fraud investigation?

    Common triggers include: consistent underreporting of income; claiming false dependents or deductions; using offshore accounts to hide assets; tips from business partners, employees, or ex-spouses; and large discrepancies between a lifestyle and reported income. An audit can escalate to fraud if agents see patterns of intent.

    The IRS Criminal Investigation Division (CID) contacted me. What do I do?

    Do not answer questions. Politely state you wish to consult with an attorney and end the conversation. CID special agents are trained to build criminal cases. Immediately contact our firm. We will act as your shield, handle all communications, and ensure your constitutional rights are protected from the start.

    Can a civil tax issue turn into a criminal fraud case?

    Yes. Routine audits can be referred to the Criminal Investigation Division if the revenue agent suspects willful fraud. This is why having an attorney involved during any audit is critical—to ensure it doesn’t escalate and to protect against self-incrimination.

    What does “willful intent” mean, and how can you defend against it?

    The government must prove you knowingly and intentionally violated the law. A strong defense often shows a lack of willfulness—that errors were due to negligence, complex rules, reliance on a paid tax preparer’s bad advice, or a good-faith misunderstanding of the law. We build evidence to create reasonable doubt about intent.

    What are the potential consequences of a tax fraud conviction?

    Consequences are severe: substantial fines (up to $250,000 per count for individuals), full repayment of taxes owed plus interest, and federal prison sentences of up to 3-5 years per count. You also face a permanent criminal record. We fight to avoid conviction or negotiate for reduced charges and penalties.

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