IRVINE, Calif., Feb. 21, 2020 /PRNewswire/ -- If you've been feeling tempted to fudge the numbers, consider this your warning. If you've made intentional filing errors in the past, including the failure to file state or federal income tax returns, now is the time to contact an experienced tax compliance attorney for help reentering the tax system or to make a voluntary disclosure and avoid prison. By the time the IRS contacts you, it may already be too late.
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3 Reasons to Avoid Cheating on Your Income Tax Return
Federal and state taxing authorities can detect errors and misstatements with ease, speed, and accuracy – a reality which is reflected in the 91.2% conviction rate achieved by the IRS Criminal Investigation division (IRS-CI) in 2019.
If the IRS does detect any issues, such as tax credits that were improperly claimed, or foreign bank accounts which have not been reported, there could be numerous civil and criminal tax consequences for the taxpayer.
Reason #1: You Could Go to Prison
- Tax evasion
- Employment tax fraud
- Willful failure to collect or pay over tax)
- Willful failure to file return, supply information, or pay tax)
- Tax perjury
- Willfully making and subscribing false returns)
- Tax obstruction
Each tax crime involves an element of willfulness, or deliberate and intentional action. The sentences for the crimes listed above range anywhere from one to five years in federal prison, (per count).
Reason #2: You Could Be Chosen for a Tax Audit
Unreported income, concealed bank accounts, inflated business expenses, are likely to trigger a tax audit (as are dozens of other tax fraud red flags, as listed in IRM 184.108.40.206 beneath "Indicators of Fraud"). Tax audits are often the sources of criminal investigations.
Reason #3: You Could Be Ordered to Pay Fines
Prison time is seldom the only consequence of tax fraud. In addition to restitution, you could face criminal fines under 26 U.S. Code § 7201 of $100,000 for individuals and $500,000 for corporations.
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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]
SOURCE Tax Law Offices of David W. Klasing, PC