The lawyer and son of the US president faces up to 25 years in prison on serious charges, hampered by his lavish lifestyle and tax evasion.
Hunter Biden pleaded guilty in federal court to nine criminal tax charges, consisting of three felonies and six misdemeanors. The judge scheduled sentencing for December 16, 2024.
Mr. Biden faces a maximum sentence of 17 years in prison, although such a harsh sentence seems unexpected.
He also still faces a possible prison sentence on weapons charges. Theoretically, the punishment could be up to 25 years in prison and up to $750,000 in fines, although such a drastic sentence is unlikely.
Even though he has already pleaded guilty, the official Department of Justice press release announcing Robert Hunter Biden ’s conviction on nine tax offenses still trumpets the following about the indictment charges: he chose not to pay at least $1.4 million in federal taxes he owed from 2016 to 2019.
Notably, these taxes were «self-assessed,» meaning that the person involved himself claimed to owe these amounts on his tax returns. The amount owed was not the result of an audit; he simply did not pay the funds to the IRS and instead used the money for other expenses.
The charges go on to say he evaded taxes and filed a false return for 2018.
The nine-count indictment against Biden said he:
— withdrew millions outside of his own company’s payroll and tax withholding process, subverting withholding rules;
— Instead of paying his taxes, he spent millions of dollars on an extravagant lifestyle while he still owed back taxes from 2015, but stopped making the corresponding payments in 2018;
— you did not pay your 2016, 2017, 2018 and 2019 taxes on time, even though you had funds available to pay part or all of the taxes owed;
— deliberately failed to file his 2017 and 2018 tax returns on time;
— On his late-filed 2018 return, he claimed false business deductions to falsely claim he owed less money.
Here are some simple tax lessons that are almost universally applicable:
Don’t forget to pay your taxes, and don’t pay late
In most cases, if you have trouble paying taxes you admit you owe, it doesn’t become a criminal case. And when failure to pay is criminal, it’s often charged as a misdemeanor. Mr. Biden was charged with failure to pay (tax years 2016, 2017, 2018 and 2019) and failure to file (tax years 2017 and 2018). A misdemeanor failure to pay can be elevated to a felony in some cases, and the issue in this case appears to be Mr. Biden’s excessive spending on things other than taxes.
Declare your income, file your tax return on time
It’s important to file a tax return each year with the appropriate agency if your income is above the required level. Don’t forget, and don’t be late, even if you can’t pay what you owe. File the return anyway and you can arrange payments later. The statute of limitations for audits (usually three years, sometimes six) doesn’t start running until you file the return.
Avoid lavish lifestyles
It’s bad enough if you’re avoiding your tax obligations. But if you’re doing it while living a lavish lifestyle, it can seem even worse. It’s hard to say what the biggest problem was in Hunter Biden’s tax affairs, but this could be it. It’s a common theme in big criminal tax cases. When the defendant lives large but doesn’t pay his taxes, it can be a perfect storm.
Make sure your statement is accurate
Failure to file is bad, but filing false returns can be worse. Tax returns must be signed under penalty of perjury. Criminal law seems to establish that pecking order. Wesley Snipes, for example, was convicted of three misdemeanors for failing to file tax returns, and misdemeanors carry lesser penalties than felonies. Filing falsely is a felony. File your return as completely and accurately as possible.
Do not evade or obstruct the work of the control entities
Don’t be evasive or obstructive with institutions. Many taxpayers in a civil audit seem to think they can outwit or manipulate the government to get away with it. Moving money around to avoid detection, creating shell companies, and similar actions can get you into big trouble. That doesn’t mean you have to agree with everything an audit says. However, there is an established way to proceed, and a correct way to communicate with state entities. Deception and obstruction are not the way.
Do not commit deliberate violations
Willful and intentional violation of a known legal duty is something that the courts are often concerned about. You may not have intended to harm or deceive anyone, but that may not be enough. In some cases, it is difficult to argue that the mistakes were truly innocent. Failure to learn of filing requirements, efforts to conceal, etc., may mean that a violation was intentional. Even willful blindness, a kind of conscious effort to avoid learning of filing requirements, may be enough.
Be transparent
Hiding things almost always looks bad. You may have good reasons to hide things from competitors, an ex-spouse, etc. But don’t hide them from the government. Even if there is a good reason to hide property from the public, make sure the property is not hidden from the government. Report your property on your tax return and file returns for it when required.
