Determining the appropriate sentence for tax-related crimes can often cause even experienced criminal defense attorneys to struggle. The main hurdle in determining the appropriate Sentencing Guidelines range is calculating the appropriate "tax loss." This short blog entry will not address all the nuances in determining tax loss, but rather will focus on how the Sentencing Guidelines are applied once the tax loss amount has been determined.
One of the factors which a sentencing judge will consider is the "Tax Table" contained in Section 2T4.1 of the Federal Sentencing Guidelines. Although the Sentencing Guidelines are advisory only, they can be helpful to assist in determining a potential range of punishment that a judge may consider when sentencing a taxpayer convicted of committing a tax crime. The table below classifies the appropriate offense level in light of the amount of tax loss.
Tax Guidelines
§2T4.1. Tax Table
Tax Loss (Apply the Greatest) Offense Level
(A) $2,000 or less 6
(B) More than $2,000 8
(C) More than $5,000 10
(D) More than $12,500 12
(E) More than $30,000 14
(F) More than $80,000 16
(G) More than $200,000 18
(H) More than $400,000 20
(I) More than $1,000,000 22
(J) More than $2,500,000 24
(K) More than $7,000,000 26
(L) More than $20,000,000 28
(M) More than $50,000,000 30
(N) More than $100,000,000 32
(O) More than $200,000,000 34
(P) More than $400,000,000 36.
Once the amount of Tax Loss has been determined, a taxpayer will know his/her Offense Level. The Offense Level will correspond to a range of punishment (in months) as set forth in the Sentencing Table below:
The Sentencing Guidelines are one of many factors which a sentencing judge should consider before sentencing a convicted tax defendant. An experienced criminal defense and tax attorney can be an invaluable asset in presenting the best case possible for convicted tax defendants.
