• Our Attorneys
    • Alana Yakovlev
    • Daniel Bibb
    • Ryan Blanch
    • Sumeet Sondhi
  • Tax Evasion
    • Concealment Schemes
      • Concealment with Cash
      • Corporate Concealment
      • Disguised Ownership
      • IRA Concealment
      • Offshore Concealment
      • Trust Concealment
    • Evasion by filing a False Tax Return
    • Evasion of Payment
    • Failure to File
    • Obstruction of the IRS
      • Creating a tax evasion scheme
      • Harrassing and Intimidating the IRS
      • Impeding an IRS investigation in order to avoid taxes
      • Using the IRS to Harass a Third Party
    • Penalties and Prosecution
    • Tax Avoidance
      • Employer Withholding Tax Evasion
      • Failure to file an FBAR
    • Tax Evasion and Defenses
    • The Law and Prosecution
    • The Non-Filer Program
    • Third Party Liability for Tax Evasion
      • Preparing a false or fraudulent tax return on behalf of another
      • Promotion of Tax Fraud
    • Totals and Current News
      • Pedro Espada, Despite Last-Ditch Attack on Judge, Convicted of Embezzlement, Tax Evasion
  • Fraudulent Practices
    • Bankruptcy Fraud
      • Evasion through Bankruptcy Fraud
    • Filing False Business Deductions
    • Foreign Accounts
    • Identity Theft
    • Illegal Income
      • Tax Evasion and Criminal Liability
    • IRS Operational Priorities: Counterterrorism Financing
    • Misrepresentation of Workforce
    • Sales Tax Evasion
    • Structuring
    • Tax Settlement Scams
    • The IRS’ ‘Dirty Dozen’
    • Transferring assets
  • IRS Summons
  • Related Crimes
    • Recent Cases
      • 10th Circuit makes it harder to pay defense attorneys in tax fraud cases
      • 2nd Circuit decision provides slight hope for defendants accused of conspiracy to evade taxes
      • 5th Circuit rules that statute of limitations begins to run as late as the last act of tax evasion
      • 5th Circuit ruling supports expansive view of illegal income for sentencing enhancement
      • 6th Circuit limits the use of illegal income sentencing enhancement for tax evasion
      • 9th Circuit expands the applicability of the sophisticated means sentencing enhancement
  • Staff
    • Emel McDowell
  • Tax Crime Defenses
    • Absence of a Deficiency
    • Amendment of Return
    • Cash Hoard Defense
    • Fatal Variance Defense
    • Selective Prosecution
    • Tax Defenses that Rarely Work
    • The Inability to Pay Defense
    • The Mistake of Law
    • The Third Party Defense
    • Willfulness
  • Tax Crime Sentencing
    • Adjustments
    • Criminal History Category
    • Offense Level
  • Tax Fraud Generally
    • Prosecuting Tax Fraud Cases
    • Recent Cases in the News

646-808-3345

  • About Us
  • Recent Tax Cases
    • Federal Cases
    • 2nd Circuit
    • 5th Circuit
    • 5th Circuit
    • 6th Circuit
    • 9th Circuit
  • IRS Subpoenas
  • Case Results
  • BLF in the News
  • Contact Us
     
This jQuery slider was created with the free EasyRotator for WordPress plugin from DWUser.com.

OK
  • The IRS’ ‘Dirty Dozen’
  • Third Party Liability for Tax Evasion
  • Failure to File
  • Filing False Business Deductions
  • Promotion of Tax Fraud
  • Identity Theft
  • Structuring
  • Creating a tax evasion scheme
  • Impeding an IRS investigation in order to avoid taxes


Absence of a Deficiency


Arguing the absence of a tax deficiency is a common tax evasion defense strategy. Similar in theory as the cash hoard defense, this argument is aimed at disproving the “existence of a tax deficiency.” Simply put, the defendant is asserting that he has already paid all due taxes and that any alleged deficiency is actually not taxable.

A common example is offsetting errors, where the defendant has mistakenly understated one area of income but inadvertently compensated for it in another.  Also, the funds might simply not be a taxable form of income at all. For instance, many gifts are not taxable, and the same goes for loans and returns of capital.

While an IRS assessment is sufficient to prove a deficiency, all defendants have a constitutional right to challenge all parts of the prosecution’s case, including the assessment.  So while a jury may be instructed to give some weight to an IRS assessment, all defendants on tax fraud prosecutions are entitled to have the jury evaluate the validity of the assessment.

  • Sitemap
  • Contact Us

646-808-3345

©2012 All Rights Reserved Attorney Advertising | Disclaimer