Income Tax Evasion And What It Means

Income Tax Evasion And What It Means

Income Tax Evasion And What It Means

IRS tax evasion is not something you should never attempt, however there are people every year that try to defraud the IRS. Even if you escape the wrath of the IRS for a while, I promise you, they will find you and get what is owed to them.

When looking for ways to pay less taxes, be sure you aren't following some unproven scam or crazy tax scheme. Just because your neighbor has done it, doesn't mean it's legit. Check out all tax deductions and credits with the IRS, or have a tax adviser look over your return.

One illegal tax scheme that has reared it's ugly head, is where arrangements are made to give the appearance the taxpayers can't liquidate their money, yet the taxpayers were actually receiving their money through debit cards and sometimes fictitious loans. Don't get caught up in anything like this if you want to stay out of jail! These types of scams are usually dealing with offshore banking.

Even the IRS has said, If it sounds too good to be true, then it probably is. Tax laws and credits seem to change all the time, which is another reason to have your return done by a professional

Even smaller things can be concluded as tax fraud, such as, paying employees cash ,in order to avoid paying payroll taxes. It doesn't matter what your deception is, it is a criminal offense.

Listed below are just a few of the tax penalties that can be given to people. These penalties are considered criminal penalties because tax evasion is a crime!

1.Failure to file

2.Frivolous return

3.Understatement of income tax

4.Fraud

5.Paying taxes late

6.Failure to furnish tax shelter registration number

There are more penalties ,and sometimes these penalties are piled on top of each other, so make sure you pay your taxes on time, and with all the information filled out correctly.

Will the IRS prosecute? If they have to, they will. Most taxpayers are able to work out a payment plan or settlement with the IRS prior to any type of prosecution. However, it is only a misdemeanor to just not file your taxes at all. If you are found guilty, you could possibly spend twelve months in prison and still be fined up to $25,000 for each year you did not file. So, be sure to fill out all your forms correctly, and with all the information requested.

If you have been thinking about lowering your taxes, please use a reputable firm and follow all the rules set down for taxpayers.

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