What Is Tax Evasion?

 Posted on April 17, 2018 in Fraud

Tax season is about to come to a close, and many of us are hurrying to get our taxes filed before today's deadline, the last day of the 2018 tax season. While most of us have either used do-it-yourself (DIY) tax preparation platforms, others have relied on accountants or certified tax professionals to better assist us. Unfortunately, there are some individuals who fail to report certain incomes or documents on their tax return, which could lead to serious consequences.

Definition of Tax Evasion

Tax evasion is when a taxpayer misreports his or her income, credits, and deductions on tax returns, or if the taxpayer does not file a required tax return. Not everyone goes to prison for tax evasion; however, if the taxpayer conceals his or her assets and income that should be used to pay back taxes, more serious consequences may follow.

The Internal Revenue Service (IRS) will mainly look for unreported income, false statements, and deliberately hidden records for criminal investigation.

Example of Tax Evasion

Concealing a side job is one of the biggest red flags for a fraudulent tax return. If an individual has a main job and decides to pursue another job on the side, he or she must report both sources of income. The omission of an entire source of income is a huge indicator of fraud.

When the audit letter arrives for the taxpayer, then he or she must report income earned from the previous year. If the taxpayer only indicates one checking account if he or she really has more than one account, then the taxpayer has omitted an entire source of income, concealed a bank account, and made false statements on the report.

The penalty for criminal tax evasion cases is undesirable. If a taxpayer is caught omitting a source of income, concealment of a bank account, and making a false statement on his or her tax return, then the taxpayer may face jail time of up to five years. If found guilty, he or she must pay back taxes with a high fraud penalty.

Call a Cook County Criminal Defense Attorney

Failing to pay back taxes can lead to serious consequences. If you have been accused of concealing your assets and income, you may lose future employment opportunities and your reputation in the community, and then you may need effective legal representation. At the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, we will go above and beyond to protect your rights. To schedule a free initial consultation, please call a Chicago criminal defense lawyer at 312-629-0069 to get started on your case.

Source:

https://www.hrblock.com/tax-center/irs/tax-responsibilities/prision-for-tax-evasion/