You won’t to find a person who will happily declare, “I love paying taxes.” Despite the fact that taxes support the government, so it’s able to ensure the progress of the nation, it’s not an expense that people automatically see the benefits of.
Of course, news of corruption also don’t help the way people feel about taxes, but that doesn’t alter the reality that every working individual has to pay taxes, and committing tax fraud or tax evasion is never a solution.
Unfortunately, this doesn’t stop some from trying to escape the responsibility.
The IRS reports that:
– 75% tax cheating cases are done by individuals (surprisingly, mostly middle-income earners).
– The rest are done by businesses such as cash-intensive operations and service providers.
– Self-employed individuals and doctors are among the worst tax evaders.
– The profile of a typical tax evader in the county is a male under the age of 50. He belongs in the highest tax bracket and has a complicated return. His usual means of tax evasion would involve the overstatement of contributions to charitable organizations and donating to churches.
– Most people evade taxes by keeping a double set of books and making false invoices and documents.
Tax evasion is the more common form of tax cheating. This is when an individual deliberately doesn’t report income, or reports expenses not legally under his name, and/or doesn’t pay taxes owned.
The other form of tax cheating done by many is tax fraud; this happens when an individual or business intentionally presents false information on the tax return to avoid paying the full tax obligation.
This is often accomplished by claiming false deductions, claiming personal expenses as business expenses, and neglecting to report complete income.
” Both forms of tax cheating, have steep charges, especially if it’s established that you truly have been deliberately avoiding paying, and have taken specific actions to present incorrect financial information.”
The following are the financial consequences of tax evasion:
– The tax due, plus civil penalties amounting to 75 percent of the tax due.
– Growing interest for both the penalty and the taxes.
Apart from still having to pay the taxes, and penalties, it’s not far-fetched to serve jail time as well because tax cheating is a type of felony.
– Five years plus fines of up to $250,000 for individuals, and $500,000 for corporations;
– Three years for filing a false return, plus $250,000 in fines for individuals, and $500,000 for corporations, and
– One year for not filing a return at all (the least serious offense), plus fines of up to $100,000 for individuals and $200,000 for corporations.
Putting tax evasion and fraud cases to trial is a long process. Likewise, such cases are very tricky for Justice Department lawyers to establish or prove; the stakes are always higher when the cases are taken to court.
And speaking of stakes, tax evasion and fraud have other serious impacts and you will suffer through these consequences even if you turn a new leaf.
– For example, if you didn’t pay your tax the previous year, but did this year and you expect a refund, there is the bigger probability of the IRS holding on to it and you will not get that refund.
– The IRS may also attack your other assets – you can lose properties under your name.
– It’s important to note too that this whole situation can impact your credit report, diminishing your personal credibility in and eligibility for a variety of financial transactions.
If you address the tax evasion case right away, and amend your tax returns and pay the debt, the IRS is usually very considerate.
It’s simply the most convenient way of resolving the case; you uphold your responsibility and they no longer pursue criminal charges against you.
Piece of advice: If you’re unable to file your taxes on time and you receive a notification from the IRS, work out an extension. Make sure you pay all your accountabilities as promptly as you can.
It will also help to get as much information as you need from the agency and have them as your partner in honoring your responsibility as a taxpayer.
The IRS is very helpful to those who want to correct their wrong because providing assistance is easier than going through a legal battle over taxes.
Tax cheating is no light matter, it can spawn all kinds of difficulties for you, so don’t even entertain the idea and just follow the rules.
Do what is right because, the amount of money you’re thinking you can save by cheating your way through taxes definitely doesn’t compare to the penalties of the crime and its other consequences.
Tax evasion and fraud can lead to penalties and even jail time. If you have a loved one in need of help contact Eight Ball Bail Bonds today!