Tax evasion in Illinois is a serious crime that carries stiff penalties. Because there are a wide variety of taxes, there are different categories of tax crimes. They include:

  • Tax evasion of assessment taxes
  • Evasion of payment
  • Failing to file a tax return
  • Filing a false return

Tax laws in Illinois are complicated because you can be charged with different crimes under each tax crime category.

Free Consultation

Honest Mistakes

Filing your taxes can be a headache if you try to do the process on your own. There are a lot of complex forms that need to be filled out, and it’s not uncommon for mistakes to occur. Just because you make a mistake on your tax return does not mean you will be charged with a tax crime.

In order to be charged with tax evasion, the Internal Revenue Service must prove that a person intentionally tried to mislead the agency, either by withholding information or by misreporting. If the I.R.S. finds that you accidently provided misinformation, they will simply impose a small penalty fee and request that you pay what you should have paid in the first place.

Penalties for Tax Fraud

Because there are so many different tax laws, the penalties for each individual crime vary greatly. In most cases, the I.R.S will order a monetary penalty, and they can attach interest rates and fees for the time period that the taxes went unpaid. There are two penalty tiers for not filing a tax return.

  • Tier 1 – The lesser of $250 or 2% of the tax required to be shown due on the return and reduced by timely payments or credits. If the return is timely filed but cannot be processed, you will have 30 days to correct the return before penalty is due.
  • Tier 2 – If you do not file a return within 30 days of receiving a notice of non-filing, an additional penalty will be imposed equal to the greater of $250 or 2% of the tax shown due on the return without regards to timely payments. The additional penalty may not exceed $5,000. The penalty will be assessed even if there is no tax due.

If the I.R.S. finds that income was under-reported by more than 25%, they have the ability to check your returns from the past six years and assess further penalties if more fraud is uncovered. If fraud is found during this search, the I.R.S. will be able to go through your entire tax history to search for further violations, which would be subject to penalty.

In addition to monetary penalties, a person can be subject to imprisonment if they are found guilty of tax evasion. While penalties vary on a case-by-case basis, I.R.S. statues recommend that prison sentence does not exceed five years.

Illinois Tax Evasion Attorney

Contact the Illinois criminal and civil defense lawyers at Appelman & Associates today to discuss your case: (630) 717-7801.