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Wisconsin Tax Fraud Lawyer - Offices in Racine, WI - Cafferty & Scheidegger

Do you need a lawyer to handle a tax fraud case filed against you in Wisconsin? Cafferty & Scheidegger, S.C. has an experienced Wisconsin Tax Fraud lawyer.

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Southeast Wisconsin Tax Fraud Lawyer

While people generally do not want to pay taxes, it is the law. Tax fraud costs the government and the American people millions of dollars each year. As a result, both state and local tax agencies are very interested in identifying and prosecuting those who commit tax fraud. Being convicted of tax fraud can result in serious penalties, including prison, fines and forfeiture of property.

If you are being investigated by any tax reporting agency, even if you have not been charged with fraud, you should immediately contact an experienced Wisconsin Attorney at the Cafferty & Scheidegger, S.C., who understands the complexities of tax and criminal law, and who will work closely with you to defend aggressively your charges.

The Governing Statutes

Tax fraud can be charged under either Wisconsin law or federal law, and in serious cases both jurisdictions pursue the same conduct.

  • Wis. Stat. § 71.83: Wisconsin income-tax fraud and evasion. Penalties include civil surcharges and criminal exposure for willful attempts to evade tax.
  • Wis. Stat. § 77.60: Sales and use tax penalties, including felony exposure for willful conduct in the retail-seller context.
  • 26 U.S.C. § 7201: Federal tax evasion. Up to 5 years in federal prison and up to $100,000 in fines per count, plus restitution and prosecution costs.

The defining element in all three statutes is willfulness. The government must prove the defendant acted with a voluntary, intentional violation of a known legal duty. Good-faith disputes about the tax law, reliance on professional advice, and mistakes of fact or accounting judgment are routine grounds for defense. A skilled federal or state tax-defense attorney focuses the case on exactly that element.

Types of Tax Fraud

Cheating on federal taxes is most common when thinking about the concept of income tax fraud. However, while federal income tax fraud typically nets the most benefit, it also occurs on the state level with state income tax fraud as well as sales tax fraud.

Activities that may tip off the government that you may include:

  • Failing to file a tax return
  • Underreporting or omitting income
  • Claiming false deductions
  • Hiding assets
  • Abusing charitable deductions

Furthermore, both the federal and local governments are regularly tipped off by “whistleblowers” who alert them to possible tax fraud.

Consequences

In tax fraud, there can also be criminal penalties that may result in incarceration for a few months up to several years.

We Can Defend You

Tax law is complicated. If you are under investigation, do not attempt to represent yourself. You should contact an experienced attorney right away. If you are convicted of tax fraud, not only may you end up in jail, but you may have to pay a significant penalty. Failure to pay may result in a federal or state tax lien being placed on your property. Contact Cafferty & Scheidegger, S.C., at 262-632-5000 to arrange a free initial consultation with an experienced Racine federal criminal defense lawyer. We serve clients throughout Southeastern Wisconsin.

Frequently Asked Questions

How long do you go to prison for tax fraud in Wisconsin?
State income-tax fraud under Wis. Stat. § 71.83 carries graduated penalties depending on the conduct, ranging from misdemeanor (up to 9 months) for less serious violations to Class H felony (up to 6 years) for willful evasion. Federal tax evasion under 26 U.S.C. § 7201 carries up to 5 years federal prison plus a $100,000 fine per count and prosecution costs. Sophisticated or multi-year cases often charge multiple counts.
What is the difference between state and federal tax fraud charges?
State tax fraud is charged under Wis. Stat. § 71.83 (income) and Wis. Stat. § 77.60 (sales/use) and is litigated in Wisconsin circuit court. Federal tax evasion under 26 U.S.C. § 7201 is litigated in federal court with no parole, the 85% time-served rule, and U.S. Sentencing Guidelines driving the sentence. Serious cases sometimes draw both state and federal charges based on the same conduct.
What does the government have to prove for tax fraud?
Both state and federal tax-fraud statutes require proof of willfulness: a voluntary, intentional violation of a known legal duty. Good-faith disputes about the tax law, reliance on professional advice from a CPA or tax attorney, and mistakes of fact or accounting judgment are routine defenses to the willfulness element. Negligence, even gross negligence, is not enough to support a criminal conviction.
Is failing to file a tax return a crime in Wisconsin?
Yes. Willful failure to file a return is a separate offense under both Wisconsin and federal law (26 U.S.C. § 7203 federally, up to 1 year per count). The State must prove the defendant was required to file, knew of the obligation, and willfully failed to comply. Inability to pay is not a defense to failure to file; the return must still be filed even when the tax cannot be paid in full.
Can a tax fraud case be resolved without criminal charges?
Sometimes. Civil resolution of disputed liability, voluntary disclosure programs, and pre-indictment defense work occasionally persuade the IRS or Wisconsin Department of Revenue to decline criminal referral. Once a case is referred to IRS Criminal Investigation (IRS-CI) or to the U.S. Attorney's office, the path narrows substantially. Early defense intervention during the audit or examination stage is the highest-leverage moment.
Should I talk to IRS Criminal Investigation agents?
Not without tax defense counsel present. IRS-CI special agents are federal law enforcement officers whose job is to build a criminal case. Statements to IRS-CI can themselves be charged under 18 U.S.C. § 1001 (false statements, up to 5 years per count). The right answer to a contact from IRS-CI is to politely decline and call experienced federal tax defense counsel before any further interaction.
How long does a tax fraud conviction stay on your record?
Permanently. Federal felony tax convictions are not expungeable; only a presidential pardon removes the conviction. Wisconsin tax-fraud convictions may be expungeable under Wis. Stat. § 973.015 only if the defendant was under 25 at the time of the offense and the court ordered expungement at sentencing. Tax convictions also trigger professional-licensing consequences for CPAs, attorneys, financial advisors, and others.
Does tax fraud show up on a background check?
Yes. Federal felony tax convictions surface on every background check for life, cost federal firearm rights under 18 U.S.C. § 922(g)(1), and trigger automatic discipline at most professional licensing boards. Tax-fraud and tax-evasion convictions are also classified as 'crimes of moral turpitude' for immigration purposes, with serious consequences for non-citizens.
Can I plead the Fifth Amendment on a tax return?
Generally no on the basic filing obligation, but yes on individual line items if disclosure would be self-incriminating. The Supreme Court's framework distinguishes the act of filing (required) from compelled disclosure of incriminating specifics (protected). The line is delicate and fact-specific; this is one of many reasons to involve tax defense counsel before filing a return when criminal exposure is possible.
What defenses work against tax fraud charges?
Effective defenses include lack of willfulness (good-faith disputes about the law, reliance on a CPA or tax attorney, accounting-judgment mistakes), Cheek defense (sincere though unreasonable belief that the tax law did not require the conduct), suppression of evidence obtained through overbroad summons or improper search warrants, statute-of-limitations defenses (generally 6 years for tax evasion under 26 U.S.C. § 6531), and challenges to the government's tax-loss calculation that reduce USSG offense level.
How much does a Wisconsin tax fraud lawyer cost?
Flat-fee for some pre-indictment work, hourly in complex investigations and trials. The range tracks tax-year complexity, forensic accounting needs, document volume, whether IRS-CI is involved, parallel civil-fraud exposure, and whether the case is at audit, examination, or indictment stage. Free initial consultation produces a scoped quote against the actual posture of the case.

Why Choose Cafferty

Free Consultation

From our offices in Racine and Kenosha Wisconsin, the criminal defense lawyers at Cafferty & Scheidegger defend the rights of people charged with state and federal criminal offenses throughout Southeastern Wisconsin (Racine, Kenosha, Walworth). If you or a loved one is charged with a crime, contact us today to arrange a free initial consultation with an experienced Racine criminal defense attorney right away. For urgent matters, you are welcome to call or text us 24 hours a day at (262) 632-5000.

We Defend You

The attorneys at Cafferty & Scheidegger have excellent knowledge of the state and federal court system throughout Southeastern Wisconsin. They are aggressive trial lawyers that are recognized for integrity and hard work. Our law firm’s strength lies in our exceptional pre-trial investigation and case preparation. We come to the prosecutor’s office prepared with the facts and ready to help you get the best possible outcome for your charges. Our priority is always to keep you out of jail and avoid a conviction on your record, whenever possible.

Proven Experience

The dedication of the team at Cafferty & Scheidegger to client service and their record of success has earned them listings as Wisconsin Super Lawyer® from 2008 - 2026. In addition, their reputation for high standards has earned them an AV Distinguished rating by Martindale-Hubbell. Cafferty & Scheidegger is backed by more than 32 years of trial skills and courtroom experience.

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