Federal Tax Fraud Defense in Louisiana

Written by Jarrett Ambeau, trial attorney, court-qualified forensic DNA expert, and lead counsel at The Ambeau Law Firm.

What is federal tax fraud? It is a willful attempt to evade taxes or defeat the tax laws, charged mainly as tax evasion under 26 U.S.C. section 7201 or filing a false return under section 7206. The line between a crime and an honest mistake is willfulness, an intentional violation of a known legal duty, which is where these cases are usually fought.

A criminal tax investigation is frightening precisely because the line between aggressive accounting, an honest error, and a crime can look blurry. But that line has a name: willfulness. The government has to prove you intentionally violated a duty you knew you had. Many tax cases are won by attacking exactly that.

I am Jarrett Ambeau. I have tried more than sixty felony jury trials to verdict. Criminal tax cases turn on intent and on the documents, and that is where I focus the defense.

Quick answers

• What it is: willful tax evasion or filing a false return (26 U.S.C. sections 7201 and 7206).
• The penalty: up to five years for evasion, up to three for a false return, plus taxes, interest, penalties, and restitution.
• The key issue: willfulness, whether the violation was intentional or an honest mistake.
• What to do first: do not talk to IRS agents and get experienced counsel before any statement.

What counts as criminal tax fraud?

Not every tax problem is a crime. The felony offenses require willful conduct: tax evasion under section 7201 is a willful attempt to evade or defeat a tax; filing a false return under section 7206 is willfully signing a return known to be false in a material way. Related charges include failure to file, failure to pay, and conspiracy. Civil penalties, by contrast, apply to negligence and honest errors, which are not crimes at all.

What the government must prove

For criminal tax evasion, the government must prove beyond a reasonable doubt:

• A tax deficiency. That additional tax was owed.
• An affirmative act of evasion. A step taken to evade or defeat the tax, not mere failure to pay.
• Willfulness. That the defendant voluntarily and intentionally violated a known legal duty.
• The amount. The tax loss, which drives the sentencing exposure.

How a criminal tax case moves

These cases usually begin with IRS Criminal Investigation working quietly, sometimes emerging from a civil audit. A special agent’s contact or a summons may be the first sign. If charges are filed, they come by indictment or information, followed by arraignment, a document-intensive motions and discovery phase, and either a plea or trial, with sentencing tied to the tax loss under the federal guidelines. Engaging counsel during the investigation stage is often critical.

What are the defenses to tax fraud?

The defenses that come up most often include:

• No willfulness. That any error was an honest mistake, negligence, or a good-faith misunderstanding.
• Reliance on a professional. That the defendant reasonably relied on an accountant or tax preparer.
• Genuine dispute. That there was a legitimate disagreement over what the law required.
• Challenging the loss amount. Disputing the government’s tax-loss calculation, which drives the sentence.
• Insufficient evidence of an affirmative act. That there was no criminal act of evasion.

How we defend a tax fraud case

Tax defense is document work and intent. We gather the evidence, work through the returns and financial records, talk to the accountants, and reconstruct what actually happened, and we build the timeline the government would rather ignore. Where it helps, we bring in forensic accounting to test the government’s tax-loss numbers, which often shapes both guilt and sentence.

With more than sixty felony jury trials to verdict, we prepare every case for trial, and that preparation strengthens any negotiation with the government. Getting involved during the investigation is often the most important step. It is what we do here at The Ambeau Law Firm.

Frequently asked questions

What is federal tax fraud?

Federal tax fraud covers willful attempts to evade taxes or defeat the tax laws. The core felony is tax evasion under 26 U.S.C. section 7201, and filing a false return under section 7206. What separates a crime from an honest mistake is willfulness, meaning a voluntary, intentional violation of a known legal duty. Simple errors or negligence are civil matters, not crimes.

What is the penalty for tax evasion?

Tax evasion under 26 U.S.C. section 7201 is a felony carrying up to five years in prison and substantial fines, plus the taxes owed, interest, and penalties. Filing a false return under section 7206 carries up to three years. Sentences under the federal guidelines are driven largely by the amount of the tax loss, and restitution to the IRS is typically ordered.

How is willfulness proven in a tax case?

Willfulness is the central issue in most criminal tax cases. The government must prove the defendant knew of the legal duty and voluntarily and intentionally chose to violate it. Good faith misunderstanding of the law, reliance on a professional, or a genuine dispute about what was owed can all negate willfulness. That is why the defendant’s state of mind and records are so important.

Should I talk to the IRS if I am under criminal investigation?

Not without a lawyer. A civil audit and a criminal investigation are very different, and statements made to revenue agents or special agents can be used against you. If IRS Criminal Investigation is involved, or you receive a summons or a special agent’s contact, the safest step is to stop and get experienced counsel before saying anything.

Talk to a Louisiana tax fraud defense lawyer

A few quick questions help us understand your situation: Have you been contacted by IRS Criminal Investigation? Is this still an audit or a criminal matter? Have charges been filed? If you are facing a tax fraud investigation, do not wait. Check Jarrett’s availability for your case or call 225-330-7009.

Statute reference

Federal criminal tax offenses are charged under Title 26, including 26 U.S.C. section 7201 (tax evasion) and section 7206 (fraud and false statements). Statutes and guidelines change, so verify the current text through official government sources. Tax evasion is a willful attempt to evade or defeat a tax and is a felony carrying up to five years, while filing a false return carries up to three years, with sentences driven by the tax loss and restitution to the government typically ordered.

Source: 26 U.S.C. §§ 7201, 7206.