{"id":87392,"date":"2019-01-11T15:36:01","date_gmt":"2019-01-11T20:36:01","guid":{"rendered":"https:\/\/sentencing.net\/?p=87392"},"modified":"2019-11-05T15:11:19","modified_gmt":"2019-11-05T20:11:19","slug":"tax-evasion-fine","status":"publish","type":"post","link":"https:\/\/sentencing.net\/sentencing\/tax-evasion-fine","title":{"rendered":"Second Circuit Affirms $10 Million Fine for Tax Evasion"},"content":{"rendered":"\n\t
Tax evasion is a serious crime that can result in prison time and hefty fines. Defendants convicted of tax-related crimes typically receive a downward variance from the applicable sentencing range according to the Sentencing Guidelines. However, the opposite proved true for a wealthy defendant involved in a high-profile tax case in New York. The Second Circuit Court of Appeals recently ruled in United States v. Zukerman<\/em><\/a> that a fine of $10 million imposed by the district court against a defendant convicted of tax evasion was reasonable despite the fact that it was well above the $250,000 maximum per the Sentencing Guidelines.<\/p>\n Pursuant to Section 7201 of the U.S. Tax Code, tax evasion is a felony. For one count of felony tax evasion, a defendant may be sentenced to up to five years in prison and fined up to $250,000. If the defendant is a corporation, the fine may be up to $500,000. Prison sentences for a combination of state and federal tax evasion charges may be either served consecutively or concurrently<\/a> per the district court’s order.<\/p>\n <\/p>\n For purposes of determining which of the ranges from the Sentencing Guidelines is applicable, the court must first calculate “the total amount of loss that was the object of the offense.” This amount could end up being larger than the total amount that the government did not collect in taxes. The court may also consider the conduct of the defendant, both charged and uncharged, in determining the base level offense. This calculation does not include penalties and interest owed by the defendant.<\/p>\n <\/p>\nSentencing and Fines for Tax Evasion Offenses<\/h2>\n
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The Fine for Tax Evasion Imposed in United States v. Zukerman<\/em><\/h2>\n