Michigan Tax Fraud And Evasion – MCL 205.27

Tax fraud and evasion are serious offenses in Michigan, carrying significant legal consequences that could include fines and jail time. Below, experienced criminal defense lawyers at George Law provide a helpful explanation of these offenses and the relevant penalties and defenses that might be available to individuals who are charged.

Prohibited Conduct Under Section 205.27

Michigan Compiled Laws Section 205.27 outlines specific prohibited conduct regarding tax payments and filings in the 

Failing To File Or Pay Taxes

This includes not making tax returns or payments within the specified time and extends to making false or fraudulent returns or statements in these documents.

Aiding Tax Evasion

It is illegal to help another person evade tax payments, or to file false claims for tax credits.

Making False Statements

Creating or allowing false returns, payments, or claims for credits or refunds, either wholly or partially, is prohibited.

Penalties For Violating Tax Laws

The law imposes severe penalties for violations.

Felony Charges For Intentional Fraud Or Evasion

A person intentionally committing tax fraud or aiding in evading tax payments is guilty of a felony. This includes fines up to $5,000, imprisonment for up to 5 years, or both.

Perjury For False Statements

Knowingly making false statements in tax returns or payments to defraud the state is considered perjury, punishable according to Michigan law.

Misdemeanor For Other Violations

Violations not falling under the category of intentional fraud are treated as misdemeanors, with penalties including fines up to $1,000, imprisonment for up to 1 year, or both.

Some Potential Defenses Against Tax Fraud and Evasion Charges

Absence Of Fraudulent Intent

A key element in tax fraud cases is the intent to defraud. If it can be demonstrated that the taxpayer lacked fraudulent intent, this can be a strong defense. For instance, mistakes or errors in tax documents that were not intended to deceive or evade taxes could be argued.

Mistake Of Fact

In some instances, a taxpayer may make an honest mistake or misunderstanding regarding the facts of their tax situation. If this mistake led to the violation, it might be used as a defense, particularly if it can be shown that the taxpayer made a reasonable effort to comply with the law.

Lack Of Evidence

The prosecution must prove beyond a reasonable doubt that the taxpayer committed the acts of fraud or evasion as outlined in the statute. If the evidence is insufficient to meet this burden, it could be a basis for defense.

Frequently Asked Questions About Michigan’s Tax Fraud And Evasion Laws

What Conduct Is Prohibited?

Prohibited conduct includes failing to file or pay taxes, aiding in tax evasion, and making false statements in tax documents.

What Are The Penalties For Violating These Tax Laws?

Violations of these laws can result in severe penalties. Intentional fraud or evasion is a felony, with potential fines of up to $5,000 and imprisonment for up to 5 years. False statements can lead to perjury charges, and other violations are treated as misdemeanors, potentially leading to fines and imprisonment.

Can Lack Of Intent Be A Defense Against Tax Fraud Charges?

Yes, demonstrating an absence of fraudulent intent can be a key defense. Mistakes or errors in tax documents that weren’t intended to deceive or evade taxes could be argued to dismiss such charges.

Contact Michigan Tax Fraud and Evasion Lawyers At George Law

Understanding and complying with Michigan’s tax laws is essential to avoid severe penalties. These laws cover a range of illegal activities from failing to file tax returns to actively engaging in tax fraud. The state takes these violations seriously, as evidenced by the penalties.

If you are facing charges or have concerns about tax fraud and evasion laws in Michigan, it’s crucial to consult with a criminal defense lawyer. The experienced tax evasion attorneys at George Law are available to discuss your case and legal options. For a personal consultation, contact us at (248) 247-7459 or reach out to us online. Our team can help you understand your rights and responsibilities under the law.