Carlos Mencia was branded one of California's biggest tax scofflaws after the comedian was arrested at his Encino home over claims he failed to report a staggering $8.7million in income - leaving the state short more than $300,000.

The 58-year-old Mind of Mencia star pleaded not guilty on Monday to 12 felony tax-related charges, days after armed agents descended on his mansion in a raid his lawyers later blasted as an 'absurd show of force.'

Los Angeles County District Attorney Nathan Hochman said Mencia (whose real name is Ned Arnel Mencia) had allegedly failed to file tax returns on millions in personal and corporate income between 2019 and 2024.

Hochman said the comedian had been sent 78 demand notices by the California Franchise Tax Board warning him that returns had not been received.

Yet prosecutors claim Mencia still did not report approximately $8.7million in earnings over the five-year period, allegedly leaving more than $300,000 in state taxes unpaid.

'He thought maybe taxes were a laughing matter,' Hochman said when announcing the case last week.

Hochman said his office would pursue people who 'chose to take an unfair advantage.'

The DA also described Mencia as one of California's '500 greatest tax delinquents' and one of the state's biggest tax scofflaws as he unveiled the prosecution.

Mencia now faces six felony counts of failing to file a personal income tax return with intent to evade taxes and another six felony counts involving alleged failures to file corporate tax returns.

The corporate allegations are tied to Nedlos Entertainment, Inc., the company where Mencia is listed as chief executive and owner.

Authorities allege roughly $3.3million in personal income and $5.4million in corporate earnings went unreported.

If convicted on all counts, prosecutors have said Mencia could face more than 11 years in state prison. 

The comic appeared in Van Nuys court on Monday wearing a shirt emblazoned with the words 'Johnny CASH' as eight relatives, including his wife Amy, turned out to support him.

At one point, Mencia looked toward his family, shook his head and looked down, according to the New York Post.

His bail was initially set at $250,000, but a judge later lowered it to $50,000 following an emergency request from his legal team.

Mencia later made bail. The Post reported that he stuck out his tongue and laughed as he walked free from the Los Angeles Superior Court.

His brother posted bail and was seen appearing distraught in court, with a woman beside him placing a hand on his back, according to the newspaper.

Mencia's attorney Dana Cole said her client was 'very depressed, very shell shocked' after spending the long holiday weekend in jail.

'It just didn't seem… what he did which isn't right that it would warrant what happened here,' Cole told the Post.

'It seems it was just overkill so to speak to toss him in jail for such an extended period. over a three-day holiday weekend.'

The emergency filing from Mencia's attorneys accused law enforcement of transforming a tax case into an unnecessary spectacle.

'No one argues against the obligation to pay taxes,' the filing stated, according to court documents obtained by The California Post.

'But the raid at his home with multiple law enforcement agents, screaming "search warrant" with a bullhorn, and drawing guns was an absurd show of force for the alleged offenses that do not involve weapons, drugs or violence.'

Mencia's lawyers argued that the allegations involve a failure to report or pay taxes rather than accusations that he obtained money illegally.

They also said the disputed income came from his legitimate comedy and television career and predated the tax case.

His attorneys further argued that keeping him behind bars had already cost the performer dearly.

The filing said Mencia missed four nights of booked stand-up shows after his arrest, allegedly costing him up to $40,000 in lost income.

'The defendant has now already paid a steep price by damaging his national reputation, incarcerating him for several days without the opportunity to post bail and missing out on four nights of a booked venue where he could have earned up to $40,000 that he would have willingly paid to the Franchise Tax Board to start to pay back any taxes owed,' the filing said.

The comedian had been scheduled to perform at the Irvine Improv over the weekend, but the club removed promotions for his appearances after his arrest and replaced him with comedian Francisco Ramos.

Mencia was also due to appear at Jimmy Kimmel's comedy club in Las Vegas, where four shows on June 24 and 25 and eight more July appearances remained listed online.

His lawyers are seeking the return of property taken during the Encino raid, including cellphones, laptops and the driver's licenses of Mencia and his wife.

The defense said the computers contain 'valuable proprietary information' essential to Mencia's comedy performances.

Mencia's attorneys also submitted letters from friends and colleagues to argue that he was not a flight risk.

Producer Nicole 'Nikki' Rosenson, who worked with Mencia on Mind of Mencia, wrote that the comedian's life should not be reduced to the criminal case.

'It's important to me that Carlos' character is not reduced to a singular thing,' Rosenson wrote. 'He is a loving father and a loyal, kind friend.'

She said Mencia had helped struggling comedians by offering them opportunities early in their careers.

The motion said Mencia immigrated from Honduras to the United States when he was two and is the primary provider for his wife, two sons, his 83-year-old mother and extended family members.

The case is the first prosecution brought by Hochman's newly created Business Tax Fraud Unit, which targets alleged financial crimes involving payroll taxes, fraud, falsified business records and underground-economy schemes.

For Mencia, the arrest has transformed a career built on punchlines into a criminal case that could carry more than a decade behind bars.

He is due back in Van Nuys court on August 14.