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Evasion statute begins at last act of evasion.

The U.S. Government must bring a tax evasion charge within six years from the date the offense was committed. If the evasion is accomplished by filing a false return, the clock generally begins to run from the date of the filing. Some courts have held, however, that if a taxpayer who filed a false return later makes a false statement about it or otherwise commits another act of evasion, a new time period begins to run from that date.

In a recent case, the Sixth Circuit agreed with these courts that the limitations period begins to run at the last affirmative act of evasion. An original indictment charging tax evasion was filed on December 14, 1990, against a taxpayer. The filing date of the charges was more than six years after the defendant had filed his returns for 1982 and 1983. However, a superseding indictment alleged the acts of evasion relating to those tax years occurred through November, 1985. The defendant argued that the limitations period began to run when the returns were filed; the government countered that the statute of limitations for each count of evasion began to run only when the last act of evasion occurred.

The court ruled in favor of the government. To rule otherwise, the court stated, would only reward a defendant for successfully evading discovery of his tax fraud. (US v Dandy, 6th Cir., June 7, 1993)
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Title Annotation:Tax Talk; tax evasion
Author:Green, Gary L., Jr.
Publication:The National Public Accountant
Date:Sep 1, 1993
Words:234
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