Tax Evasion examples
Giving out part of your income to the government as tax is probably not one of your favorite things to do. Yes, we can agree that tax payment can be annoying, but it is an obligation you must fulfill as a citizen.
If you are trying to use deceptive means to avoid the payment of your tax debt or trying to reduce your tax liability by misrepresenting your income information, then you may be guilty of tax evasion.
Tax evasion is the illegal avoidance or eluding of tax responsibilities by an income-earning citizen. It is illegal, and therefore punishable by law.
Many times, people confuse tax evasion with tax avoidance. Tax evasion is illegal while tax avoidance is not.
If you are going through a bad financial situation and find it difficult to pay your tax, there are solutions that may help you come to a workable understanding with the IRS instead of completely skipping the payment of your taxes. Arrangements can be made for you to settle your tax debts in installment payments or even pay less than you owe. Call us now to discuss your situation and get out of the tax collection issue you find yourself drowning in.
Trying to outsmart the IRS by evading your tax payment will only bring you more trouble. Businesses that practice tax evasion are also heading towards a potential legal battle with the IRS.
People who practice tax evasion do so in many ways. They include:
– Hiding funds
– Inflating deductions
– Not reporting cash transactions
– Underreporting income
Tax evasion is a crime that can lead you to spend up to five years in prison or get fined a high amount of money if you are convicted.
Tax evasion is a form of tax fraud and apart from being made to pay what you owe with interest, you will be levied fines of up to $100,000. Depending on the unique details of your case, you may also be sentenced to serve a 5-year prison term.
A few Tax Evasion examples
There are legal ways to go about reducing your tax burden. All you have to do is speak with a tax professional to get your options explained to you. Evading your tax responsibilities completely has dire consequences and you should not be a party to it.
If you are doing any of these in order to avoid paying your tax, it may be considered tax evasion; an offense punishable by the law:
- Making false entries into books and records to avoid paying taxes.
- Failing to report an income source
- Increasing or overstating the amount of deductions on your tax return
- Lying about personal expenses and claiming that they’re business expenses
- Claiming to have received less income than you actually received.
- Giving the IRS any form of false information about expenses and business income
- Intentionally paying less than you owe on a tax debt without entering an agreement with the IRS
- Committing fraudulent activities such as hiding income and assets and transferring them
- Failing to file your tax returns
Whichever method you employ, the IRS has a way of finding you out eventually.
Tax evasion mistake?
If you have committed the offense of evading your tax responsibilities or you have found yourself on the wrong side of the law due to the misrepresentation of your income, there is still hope for you.
With the right team of tax professionals on your side to apply their knowledge and expertise on your behalf, you have a chance at redemption and the least possible penalty.
About us
We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at help@newstarttaxconsulting.com.
For more information, email info@newstarttaxconsulting.com
