What are the Consequences for Tax Evasion?
Tax evasion is one of the most serious tax related issues that an individual can face with equally serious consequences. Tax evasion is defined as a purposeful and illegal attempt to evade payment of a tax that has been imposed by the federal government (via the IRS). Conviction of felony tax evasion can lead to prison time (up to 5 years) and hefty fines (up to $100,000 in fines). The IRS actively reviews tax returns for evidence of tax evasion and if an individual is suspected of tax evasion, they will have the right to a hearing, where they can make their case to the IRS.
If the IRS still believes that there is evidence that the individual did not pay taxes owed or purposefully did not file a return when it should have been, they can be convicted of a crime. Listed below are the possible convictions depending on the severity and nature of the offense:
1. Conviction of tax evasion: This is the most serious offense and comes with a felony conviction, jail time of up to 5 years in prison and fines up to $100,000.
2. Filing a false tax return: This conviction is a bit less serious than tax evasion, but it also carries a felony conviction and can come with up to 3 years in prison and up to $100,000 in fines. The difference between this conviction and tax evasion is that the IRS only has to prove that the information included on the tax return was not truthful – they do not have to prove that the individual purposefully avoided paying the taxes.
3. Failing to file a tax return: This is a misdemeanor offense and comes with up to 1 year in prison and $25,000 for each year a tax return was not filed. If you have been contacted by the IRS for an audit or you think that the IRS suspects that you have committed tax evasion or one of the other offenses listed above, you might want to consider hiring a tax firm that can represent you and your interests and help you prepare all the appropriate documents for review. These issues can be very serious and the IRS is not likely to back off if they think that there is a serious tax problem.
Has the IRS been in touch with you?
Call Success Tax Relief!
Success Tax Relief is a full service tax firm that specializes in representing individuals who are in communication with the IRS. Our experienced team of tax professionals has extensive experience communicating directly with the IRS, often to solve very complicated tax issues for our clients before a hearing takes place. We understand what the IRS is looking for and realize that there are times that these issues are simple misunderstandings that can be resolved without jail time or large fines. If you have been contacted by the IRS, give us a call at 1-877-958-6638 so that we can get started. We can share many testimonials from our satisfied (and relieved) clients who have benefited from the effectiveness of our representation and are no longer living with the threats of tax evasion.
Dealing with the problem sooner rather than later is always wise – so do not delay, call Success Tax Relief today.