Kentucky Tax Evasion Attorney

When Tax Evasion Charges Become Federal?

Tax evasion may be prosecuted by the Commonwealth of Kentucky or the federal government—or both. While the underlying conduct may be similar, state and federal agencies have distinct jurisdictions, procedures, and penalties.

Kentucky Tax Evasion Charges
Under KRS § 131.990, it is a crime to willfully attempt to evade the payment of any tax imposed by the state. This includes individual income taxes, sales taxes, corporate taxes, and withholding obligations. Penalties can include:

• Felony conviction
• Up to five years in prison
• Fines of up to $100,000
• Additional civil penalties and interest

Federal Tax Evasion Charges
The IRS may pursue charges under 26 U.S. Code § 7201. Federal tax evasion is punishable by:

• Up to five years in federal prison
• Fines up to $250,000 for individuals or $500,000 for corporations
• Restitution and civil tax liabilities

Defending these charges requires a Kentucky tax evasion lawyer with experience in both state and federal courts. William M. Butler understands how to address parallel investigations and navigate both legal systems effectively.

How Is the Investigation and Prosecution Process Deployed?

Tax evasion cases rarely begin with an arrest. Most start with a civil audit by the IRS or the Kentucky Department of Revenue. If discrepancies, false statements, or signs of willful fraud are discovered, the matter may be referred for criminal investigation. At this stage, the government may begin surveillance, interview witnesses, issue subpoenas, and scrutinize years of financial records.

Once prosecutors believe there is sufficient evidence, they may present the case to a grand jury for indictment. From this point forward, criminal charges are likely imminent.

A Kentucky tax evasion attorney should be involved from the earliest stage—ideally during the audit or investigation phase. Early intervention can:

• Prevent criminal charges from being filed
• Limit exposure to additional liability
• Preserve key records and defenses
• Negotiate favorable settlements or immunity deals

Do not wait until you are indicted to contact a Kentucky tax evasion lawyer. Proactive defense often leads to the best possible outcomes.

Key Elements the Government Must Prove

To secure a conviction for tax evasion, the government must prove:

• A tax was due and owing – There must be a valid legal obligation to pay taxes under state or federal law.
• The defendant committed an affirmative act of evasion – This could include submitting false returns, concealing income, or structuring transactions.
• There was willful intent – Accidental errors or negligence are not sufficient. The government must show the actions were deliberate and knowing.

Each element must be proven beyond a reasonable doubt. A Kentucky tax evasion lawyer focuses on undermining the prosecution’s evidence, challenging intent, and presenting alternative explanations for alleged misconduct.

What are the Potential Penalties and Collateral Consequences of Tax Evasion Charges in Kentucky?

Tax evasion convictions carry harsh penalties designed to deter others and recover unpaid taxes. However, the consequences often extend far beyond prison time or financial penalties.

A conviction may result in:

• Loss of professional licenses (especially for accountants, lawyers, and financial advisors)
• Ineligibility for certain government jobs or contracts
• Immigration consequences for non-citizens
• Irreparable reputational damage
• Increased future tax scrutiny

The combination of financial ruin and lasting personal fallout makes it essential to retain a Kentucky tax evasion attorney who can fight aggressively to protect your freedom and your future.

What are the Voluntary Disclosure Programs and Amended Returns?

In some cases, clients may recognize potential tax exposure before the government initiates contact. Voluntary disclosure programs, both at the state and federal levels, can offer a path to resolve issues without criminal prosecution.

The IRS’s voluntary disclosure practice allows taxpayers to come forward, file amended returns, and pay back taxes along with interest and penalties. While this doesn’t guarantee immunity, it significantly reduces the risk of criminal charges.

A Kentucky tax evasion attorney can help:

• Assess whether a voluntary disclosure is appropriate
• Negotiate the best possible terms with the IRS or the Kentucky Department of Revenue
• Prepare and file amended or corrected returns
• Minimize penalties and avoid criminal liability

Taking the initiative to resolve issues before they escalate can preserve personal freedom and financial security.

Contact William M. Butler, Jr., Attorney at Law for Legal Support

If you’re facing tax evasion charges, don't navigate the complexities alone. At William M. Butler, Jr., Attorney at Law, our dedicated team is prepared to offer authoritative, personalized legal support tailored to your unique situation. With a deep understanding of Kentucky's tax laws and proven negotiation skills, we aim to secure the best possible outcome for our clients, prioritizing their needs every step of the way.

Schedule your consultation today by calling (502) 237-0871. Let us provide the thorough representation and strategic defense you need to protect your rights and future. There’s no time to wait—reach out now for the legal guidance you deserve.