Most Common Tax Crime

You know the old saying … “In this world nothing can be said to be certain, except death and taxes.” The truth is that there’s another thing that’s close to certain, and that’s that people who skip out on paying their taxes are going to be caught by the Internal Revenue Service and charged with a tax crime. The agency is tasked with plenty of positive responsibilities, including helping taxpayers who have questions or need assistance in filing their taxes and overseeing and enforcing certain benefits programs, but they are most frequently associated with collecting tax revenues for the government and pursuing those who file fraudulent tax returns.

People at all levels of income want to minimize the amount of taxes they pay to the government, and there are plenty of ways to do so legally. When activities cross the threshold into tax evasion, it’s a crime – in fact, it is the most common tax crime that is committed. The tax code defines tax evasion as failing to report taxes, reporting taxes inaccurately or failing to pay taxes. In all cases, when the IRS proves that tax evasion has occurred, the taxpayer who’s been accused has committed a criminal offense that carries significant penalties that go beyond merely paying a fine.

There are many red flags that alert the IRS to the possibility that a taxpayer is committing a tax crime and evading paying their taxes. The most common of these is claiming so many deductions as to be out of proportion to the amount of income being reported. Another thing that catches the agency’s attention is when an obviously wealthy taxpayer declares a very small amount of income. Whatever the specifics that lead to the initiation of an IRS audit, the end result is an unpleasant experience that can result in having to pay a fine that’s the equivalent of 75% of the taxes that were due, plus interest, or even being faced with jail time.

If you’ve been charged with a tax crime, you need to be represented by an attorney who has extensive knowledge of the tax code and who has experience in successfully defending people accused of tax crimes. Don’t let a mistake or a misguided accusation ruin your life. Contact our office today to set up an appointment to discuss your situation.