White collar crime is a term which includes a large number of non-violent crimes. These crimes are committed in a business or commercial setting. They are considered non-violent because no physical harm is done to the victim. One type of white collar crime is called underreporting.
Underreporting is the deliberate act of reporting revenue or income less than the real amount received. A person typically does this when reporting their tax information to the U.S. Internal Revenue Service (IRS) in order to avoid paying a higher amount of taxes.
Yes. When an individual underreports income or revenue, it is considered fraud. Both states and the federal government prohibit underreporting fraud.
An individual can fail to report employment income or:
No. Tax avoidance is a legal practice of arranging a person’s financial affairs to minimize the taxes they pay each year. This action does not involve deliberately lying about the amount of income or revenue that one receives.
While underreporting is a form of tax evasion, it is not the only kind of tax evasion out there. Rather, tax evasion is any act done to defraud the IRS. The act may include one or more of the following:
Tax evasion can be done by an individual or corporation.
Underreporting can result in many penalties such as:
Underreporting is a serious white collar crime. Thus, the consequences for an underreporting conviction can be quite severe. Contact a criminal lawyer to learn more about legal defense that may be available to you.
Last Modified: 11-23-2015 04:04 PM PSTLaw Library Disclaimer
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