Tax Evasion is generally defined as any act designed to defraud the IRS. This definition is very broad and allows the IRS to come after you for just about any knowing misstatements on your taxes.
Tax evasion usually involves an individual or corporation who misrepresents their income to the IRS. A misrepresentation may involve underreporting yearly income, inflating deductions, hiding taxable money, or transferring income to offshore accounts.
Generally you have 6 years for the government to come after you for misstatements on your taxes. But there is no time limit on when the IRS can audit you. To be convicted of tax evasion, it must be proved:
Tax evasion in the United States is a crime and an individual may be punished to substantial monetary penalties, imprisonment, or both. Punishments for tax evasion can be harsh, including:
Negligent Tax Mistakes: Negligent mistakes on taxes occur when an individual commits careless mistakes without the specific intent to actually defraud the IRS. The individual usually does not know about the mistake until they are notified. Negligent tax mistakes do not invoke a criminal offense, but the individual could face civil penalties.
Fraudulent Tax Evasion: Tax fraud is when a person intentionally does acts to defraud the IRS. A person who commits tax fraud knows that they are trying to defraud the IRS and they commit the acts purposely while knowing the consequences if they were investigated and caught.
If you have been accused of tax evasion or you are facing an audit, you should speak to a tax attorney immediately to learn more about your rights, your defenses and the complicated legal system.
Last Modified: 05-13-2015 11:16 AM PDTLaw Library Disclaimer
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