If you have purposefully avoided paying your taxes, whether federal, state, or local, you have IRS Problems.  Tax evasion, commonly called tax fraud, is a crime.  Penalties can involve fines, imprisonment, and asset seizure.  

The majority of people cheat on their taxes by underreporting their income.  These offenders are self-employed restaurateurs, car dealers, owners of clothing stores, telemarketers, salespeople, doctors, lawyers, accountants, and hairdressers.  Statistics show that the highest percentages of taxpayers who cheat are middle-income.  The worst offenders work in the service industry and in cash-intensive businesses.  Underreporting tips also has a high percentage of not being reported.  Other examples of tax fraud include using a false SSN, keeping two sets of books, keeping no books at all, altering checks, or claiming a spouse when you are single.    

Auditors expect to find errors on every tax return.  The general public is not expected to know all the tax laws so most of the time an auditor will not penalize you for making an honest mistake.  Auditors, however, are trained to look for tax fraud.  If you are caught committing fraud, the fines and penalties charged will depend on what type of fraud it was.  Civil fraud applies a 75% penalty if you underpay your taxes or a 25-75% penalty if you failed to file your taxes.  The penalty for criminal fraud can be imprisonment.  

 General Tax Fraud Penalties

•    Attempt to evade or defeat tax: Imprisonment for up to 5 years, or fined up to $250,000, or both
•    Willful failure to collect or pay over tax: Imprisonment for up to 5 years, or fined up to $250,000, or both
•    Willful failure to file return, supply information, or pay tax: Imprisonment for up to 1 year, or fined not more than $100,000, or both
•    Fraud and false statements: Imprisonment for up to 3 years, or fined not more than $250,000, or both
•    Fraud and false statements: Imprisonment for up to 3 years, or fined not more than $250,000, or both

It is important to note that you will also have the expense of the costs of prosecution to pay. Tax fraud can be expensive and is something you obviously want to avoid.  To resolve issues you have with tax fraud or any other IRS Problems, contact our office.  Our knowledgeable staff can answer your questions and assist you with your tax related issues.  Call us today tollfree at (888) 438-6474.  
 

What is Tax Evasion & Tax Fraud? is a post from: IRS Tax Problem Solver Blog - IRS Help

Former West Palm Beach City Commissioner James L. Exline pleaded guilty in West Palm Beach, Fla., to filing a false individual income tax return with the IRS for tax year 2004.

Through an information, the United States Attorney’s Office alleged Exline failed to report $50,000 in income paid to him by a Palm Beach County land developer. The payment was for past and future real estate commissions and for land-planning services related to a development being proposed by the developer.

Exline directed the land developer to pay the $50,000 to a third party, who then paid Exline. At some point after the $50,000 payment, and while the proposed development was pending in West Palm Beach, Exline met with city staff members about land use and planning issues related to the development.

During the course of these meetings, Exline did not disclose he had been retained by the developer. The development was not in Exline’s City Commission district.

Exline faces up to three years in prison and a $250,000 fine.
This just goes to show you that instead of creating IRS Problems for yourself, you should just get IRS help for yourself instead. What this politician did was just downright wrong and greedy. It just goes to show you that honesty is the best policy. Fraud, lying and deceit ends up getting you thrown in the can! If you need help with an IRS problem, please give us a call at (888) 438-6474. If overseas as an American expatriate call (813) 229-7100. We can help you whether you are in Florida, anywhere in the United States or even anywhere in the world.

West Palm Politico Did Not Disclose Payment is a post from: IRS Tax Problem Solver Blog - IRS Help

by Darrin T. Mish
Recently the IRS proved that no one is above the law when it comes to paying taxes. Wesley Snipes, actor, was charged this week with tax evasion.

Snipe's is charged with failing to file income tax returns from 1999 to 2005. Additionally, the actor has been suspected and charged with fraud because of over $12 million dollars worth of refunds he collected in 1996 and 1997.

The seriousness of the charges could result in Mr. Snipes being confined to prison for six years for not filing his returns. The additional charges conspiracy and false claims could carry additional time.

The reported argument is relying on a law that says that US citizens only have to pay taxes on income from foreign-based activities. This loophole very well could end up being a noose around the neck of the actor!

LIGHTS, CAMERA, TAX EVASION is a post from: IRS Tax Problem Solver Blog - IRS Help