Al Capone was sued for tax evasion.
Al Capone . The federal authorities became intent on jailing Capone , and they prosecuted him for tax evasion in 1931 , a federal crime and a novel strategy during the era . During the highly publicized case , the judge admitted as evidence Capone 's admissions of his income and unpaid taxes during prior ( and ultimately abortive ) negotiations to pay the government any back taxes he owed . After conviction , he replaced his old defense team with experts in tax law , and his grounds for appeal were strengthened by a Supreme Court ruling , but his appeal ultimately failed .