Ventura Tax Fraud Attorney

Before a tax fraud or other tax crime case ends up on the desk of an assistant U.S. attorney at the U.S. Department of Justice, many things happened. Confessing to an alleged tax crime need not be one of them. You need a passionate criminal tax attorney representing you at every step. Ventura criminal tax attorney Ryan J. Casson can help you fight back and defend against federal tax crimes cases involving:

• Federal tax fraud

• Federal tax evasion

• Federal tax conspiracy charges

• Failure to file a federal tax return

• Federal tax fraud/evasion voluntary disclosure

• IRS international tax voluntary disclosure

• FBAR (Foreign Bank Account Reporting)

• Administrative summonses

• Grand jury subpoenas

• Motions to suppress

• Entrapment

• Tax crimes in bankruptcy

• Cryptocurrency

• Statutes of limitations

• Pleas

Badges of Tax Fraud

The following are a few examples of what IRS civil auditors and agents and CID Special Agents look for as indicia of fraudulent tax activity:

• Failure to maintain adequate records

• Destroying records

• Concealment of assets, sources of assets, or income

• Understating income

• Failure to file tax returns

• Implausible excuses provided to IRS examiners

• Intentional underreporting of income or overstatement of deductions

• Failure to make estimated tax payments

• Claiming credits for which you know you do not qualify

• Insufficient disclosure of a position on a tax return that would “more likely than not” be disallowed if discovered

• Using an S corporation bank account as the owner’s personal “piggy bank” without proper accounting and reporting (could be viewed as an attempt to disguise personal income)

Suspicious treatment of income (an S corporation owner reporting little to no income, for example), expenses, failure to make estimated tax payments, and any fact pattern the IRS agent thinks is suspicious can result in the IRS agent requesting a meeting with an IRS tax fraud agent, a CID referral, or, worst, a referral to the U.S. Attorney’s Office for federal tax fraud charges.

Potential Penalties if Convicted of Federal Tax Fraud

• Criminal fines that can reach hundreds of thousands of dollars, plus prosecution costs

• Restitution to the IRS, often including tax, penalties, and interest

• Prison sentences, resulting in permanent felony criminal records and loss of certain civil and professional rights

• Asset forfeiture or seizure of funds and assets tied to the alleged tax offense

• Collateral consequences, including but not limited to professional licenses, business relationships, and reputation

Why You Need a Criminal Tax Fraud Attorney

Whether you are facing an IRS tax audit or you have received a federal grand jury subpoena, retaining a criminal tax attorney is crucial. From the earliest stages of the audit, your tax attorney can communicate on your behalf with the IRS. If the IRS mails correspondence informing you of an intent to refer the alleged case to the U.S. Attorney’s Office to prosecute you, your attorney can request a meeting in person with the IRS in Washington D.C. and the assistant U.S. attorney assigned to the case and attempt to negotiate a resolution, before charges are brought. And even if charges are brought, your federal tax crimes defense attorney can work to limit your criminal exposure and negotiate a potential plea (the IRS has a very, very high convictions rate). When engaged early in an IRS civil audit or investigation, a criminal tax lawyer can advise you on when and how to communicate with IRS agents and CID Special Agents, and when to invoke your constitutional rights such as the right to remain silent (the Fifth Amendment right not to incriminate yourself) and protect your rights against unreasonable searches and seizures (i.e., demanding a warrant or challenging a warrantless or other unjustified search or seizure via a motion to suppress). Remember: the burden is on the government to prove beyond a reasonable doubt that your alleged actions were intentional. If your criminal tax counsel can prove that there is no tax due, that you were not responsible for the tax due, did not have a filing duty, that the requisite criminal intent is lacking, or that convicting you under an alleged fact pattern is improbable, preventing or ending a referral to CID or the U.S. Attorney’s Office may be possible. Sometimes, a plea to a misdemeanor in exchange for a quick closure to an investigation or dismissal of charges can allow you to retain a professional license, and that might be your overarching goal. Hiring a tax attorney who understands both tax law and criminal tax law and procedure can force the government to put on their proofs and can minimize the risk of a felony criminal conviction.

If You Are Being Audited or You Have Been Charged with a Federal Tax Crime

Contact me for a consult. Do not communicate with any IRS employee or anyone who contacts you about your tax matter, without your criminal tax attorney present. It is possible that your colleagues, coworkers, employees, and even friends and family may be working against you as witnesses. Do not talk to them about your tax matter.

Do not call your CPA or non-attorney tax preparer. Why not, you ask? Because your correspondence and what you communicate to a non-attorney is not covered by the attorney-client privilege. Unless the CPA is a Kovel CPA the content of your communications with the CPA will not be privileged. A Kovel CPA is a CPA retained by your tax attorney for the purpose of the attorney providing legal advice — that CPA is an agent of your attorney’s team and the likelihood of the attorney-client privilege protecting their work and ensuring that their work does not end up in the hands of the IRS or a federal prosecutor is very high.

IRS Criminal Tax Charges: Understanding the Difference Between IRC §7201 and §7203

When people hear the phrase “tax crime,” they often assume it means the same thing in every case. In reality, federal tax crimes exist on a spectrum, and the difference between a felony and a misdemeanor can be life‑changing.

Two of the most commonly charged federal tax crimes are Internal Revenue Code (IRC) §7201 (Tax Evasion) and IRC §7203 (Willful Failure to File, Pay, or Keep Records). While both involve “willful” conduct, they are very different charges with very different consequences.

Overview: Felony vs. Misdemeanor

At a high level:

• IRC §7201 is a felony tax evasion charge.

• IRC §7203 is a misdemeanor tax offense.

That distinction alone matters. A felony conviction can result in prison time, significant fines, and long-term consequences for employment, licensing, and reputation.

What is IRC §7201 – Tax Evasion?

IRC §7201 is the U.S. government’s most serious criminal tax charge. It applies when a person willfully attempts to evade or defeat a tax.

To secure a conviction, the U.S. Attorney’s Office must prove three elements beyond a reasonable doubt:

1. A tax deficiency exists.

2. An affirmative act of evasion.

3. Willfulness.

In the federal Ninth Circuit (which includes California federal courts), the model criminal jury instructions put it this way: “For the defendant to be found guilty of [a §7201 charge], the government must prove each of the following elements beyond a reasonable doubt:

First, the defendant owed more in federal income tax for the calendar year [______] than was declared due on the defendant’s income tax return for that calendar year;

Second, the defendant knew that more federal income tax was owed than was declared due on the defendant’s income tax return;

Third, the defendant made an affirmative attempt to evade or defeat such additional tax; and

Fourth, in attempting to evade or defeat such additional tax, the defendant acted willfully.”

An affirmative act means more than inaction. Examples include hiding income, using false deductions, concealing assets, or misleading the IRS.

What Is IRC §7203 – Willful Failure to File or Pay?

IRC §7203 covers situations where a person willfully fails to file a required tax return, pay tax due, keep required records, or supply required information. Unlike tax evasion, no affirmative act is required.

These cases are charged as misdemeanors, even when large tax liabilities are involved. While failure to file a return is one element of a failure-to-file charge under §7203 but is not an element of a tax evasion charge under §7201, a §7203 failure-to-file charge is not a “lesser included offense” of §7201 tax evasion.

Key Differences at a Glance

IRC §7201 – Tax Evasion

• Felony

• Requires an affirmative act

• Up to 5 years in prison per count

IRC §7203 – Failure to File or Pay

• Misdemeanor

• No affirmative act required

• Up to 1 year in prison

What Does “Willfulness” Mean?

In criminal tax law, willfulness means a voluntary, intentional violation of a known legal duty. Mistakes, negligence, or good‑faith misunderstandings do not qualify.

A subjective, good faith misunderstanding of a legal duty or the law can be a defense to the willfulness element. But deliberate ignorance or conscious avoidance does not permit a “good faith defense.”

The Government’s Burden of Proof

In all criminal tax cases, the burden is entirely on the government. The U.S. Attorney’s Office must prove every element of the charge beyond a reasonable doubt.

Why the Distinction Matters

The difference between §7201 and §7203 affects charging decisions, potential penalties, and defense strategy. Many cases begin as civil audits and escalate to criminal investigations.

Final Thoughts

Criminal tax cases are complex and high‑stakes. Understanding the distinctions between felony and misdemeanor tax charges is critical to protecting your rights. If you are facing potential exposure to criminal tax charges, consult with a California federal criminal tax attorney today.