What is Tax Evasion?
Tax Evasion is defined as an illegal practice whereby an individual, organization or business intentionally avoids paying the taxes they owe to the IRS. It is easily the most serious of all tax infractions and can land individuals with significant jail time as well as thousands of dollars in fines to the IRS.
Tax Evasion or Tax Avoidance? What is the difference?
Tax evasion and tax avoidance are often confused but are actually very different offenses – one illegal and the other legal. The difference between tax evasion and tax avoidance lies primarily in the intentions behind the act. Tax evasion is the purposeful or intentional act of avoiding paying taxes. Generally, it involves a specific act of deceit, concealment, lying or misrepresentation of the truth. This can be purposefully under reporting the amount of money you make in a year, claiming entirely false deductions, or concealing assets that the IRS requires information on in your tax return. Tax avoidance, however, is the attempt to reduce or minimize the taxes an individual or business owes. This is most often an attempt to reduce or minimize the taxes that an individual, organization or business owes in a legal manner. There is no attempt to conceal or purposefully misrepresent or falsify information.
Consequences of tax evasion
The IRS conducts thousands of audits each year to uncover evidence of tax evasion. While you certainly do not have to have completed this illegal act to be audited, the IRS is on the lookout for evidence of tax evasion and the consequences are very serious. If an individual is suspected of tax evasion, they are entitled to a hearing in which their case can be heard. Most individuals find representation for this hearing so they can put their strongest case forward. If an individual is convicted of felony tax evasion, they can receive up to five years in jail plus $100,000 in fines to the IRS. In addition, the IRS has up to 6 years to pursue individuals or businesses for tax evasion, so it is critical to keep all of your financial documentation and tax documents filed away.
Success Tax Relief: We can help you
If you or someone you know thinks that the IRS may suspect them of tax evasion, it is critical to seek help and representation immediately. We strongly recommend that you not be in contact with the IRS on your own. Success Tax Relief is a full service tax firm that has been serving clients all over the country for more than thirty years. We have extensive experience communicating with the IRS about a wide variety of tax issues, including suspected tax evasion. We understand that these issues are complicated and that there are many cases in which there is additional information that can address the IRS’ concern and/or valid reasons why the facts may seem deceiving. We will work with you immediately to get familiar with your case and develop a strategy for moving forward in your communication with the IRS.
It is important to act fast, so give Success Tax Relief a call today at 1-877-958-6638.