Defending Yourself Against Tax Evasion Accusations

By Amy B. Levenson Jones

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Federal Criminal Defense

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Last Modified on Dec 24, 2025

Business owners and individuals may face allegations of tax evasion when federal authorities believe they deliberately attempted to avoid the assessment or payment of taxes. These investigations can involve tax returns, business expenses, financial transactions, accounting records, and communications with accountants or tax preparers.

There is an important distinction between lawful tax planning and criminal tax evasion. Taxpayers may generally arrange their financial affairs to reduce their tax obligations through lawful deductions, credits, and other provisions of the tax laws. Criminal tax evasion, by contrast, involves a willful attempt to evade or defeat a tax.

Under 26 U.S.C. § 7201, the government generally must establish three elements to obtain a conviction for federal tax evasion: a tax deficiency, an affirmative act of evasion, and willfulness.

What Must the Government Prove in a Tax Evasion Case?

Understanding these elements is an important starting point for evaluating the allegations and identifying potential defenses.

An Affirmative Act of Tax Evasion

The government must prove that the defendant committed an affirmative act intended to evade or defeat the assessment or payment of a tax. Depending on the circumstances, alleged acts may include concealing income or assets, maintaining false records, submitting false documents, or taking other steps intended to mislead tax authorities.

A failure to pay taxes, standing alone, does not necessarily establish the affirmative act required for a conviction under § 7201.

A Tax Deficiency

The government must also establish that additional tax was owed. Disputes concerning income, deductions, credits, accounting methods, or the treatment of particular transactions may affect whether a tax deficiency exists and the amount allegedly due.

Careful examination of the financial records and the government’s tax calculations may therefore be an important part of the defense.

Willfulness

Federal criminal tax evasion requires proof of willfulness: a voluntary, intentional violation of a known legal duty. A good-faith misunderstanding of the tax law may negate willfulness, even if that misunderstanding is unreasonable.

Evidence concerning the taxpayer’s knowledge, communications with accountants or tax preparers, recordkeeping practices, and understanding of the relevant obligations may be important in evaluating this element.

Defending Against Tax Evasion Charges

The appropriate defense depends on the facts and the evidence. Potential issues may include whether a tax deficiency existed, whether the defendant committed an affirmative act of evasion, whether the government can establish willfulness, and whether its financial analysis accurately reflects the underlying transactions.

Tax evasion investigations may involve extensive financial records and complicated questions about the taxpayer’s conduct and intent. An effective defense requires careful examination of the government’s allegations rather than assuming that an inaccurate return or unpaid tax establishes criminal wrongdoing.

Levenson Law Firm represents individuals facing serious federal and Pennsylvania tax-related criminal investigations and prosecutions in Pittsburgh and Western Pennsylvania. Learn more about our Pittsburgh Tax Fraud Lawyer practice.

If you are under investigation or facing tax evasion charges, contact Levenson Law Firm to discuss your circumstances and available options.

About the author: Amy B. Levenson Jones

Founder & Principal Levenson Law Firm

Amy B. Levenson Jones is the founder and principal of Levenson Law Firm, a Pittsburgh criminal defense practice representing individuals in serious Pennsylvania state and federal criminal matters. Admitted to the Pennsylvania Bar in 1997, she brings extensive litigation experience to cases involving white collar and financial crimes, federal offenses, and other serious criminal charges. Amy works directly with clients to develop individualized defense strategies grounded in careful analysis of the evidence and candid advice. She earned her J.D. from The George Washington University Law School.

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