Tax Evasion
One of the most common types of tax crime is tax evasion, which is defined as failing to report taxes, reporting taxes inaccurately, or completely avoiding paying taxes. Tax evasion is taken very seriously, and IRS tax evasion penalties can be very strict.
Some key indicators of tax evasion include:
- A person claims a large number of deductions in proportion to their income
- A person with a great deal of assets declares a very small income
While the IRS conducts audits of taxpayers at random each year, most audits are a result of unusual activity. The IRS has more than 3,000 special agents trained specifically to gather the necessary information used to detect tax evasion. These agents have access to tax returns, as well as the ability to issue a summons for further access to financial information, and the power to seize or freeze monies in the attempt to collect any additional financial information required for investigation.
If it is established that taxes have been intentionally evaded, the IRS can issue any number of income tax evasion penalties, including jail time and fines. Fines may be collected by any of the following ways:
- Freeze money in checking and/or savings accounts
- Garnish wages
- Levy tax liens
- Seize assets (any or all properties held by the individual taxpayer can be seized and sold at auction if no attempt is made to repay the liability)
Anyone that is determined to be involved in an evasion of tax liability, whether it is failure to file, failure to pay, fraud and/or false statements, or late payments, has the right to meet with the IRS and be heard. Should you find yourself in this situation, it would be wise to engage a tax attorney.
For over two decades, the attorneys at TaxLawFirm.net have provided quality, professional legal counsel to both individuals and businesses going through tax matters related to tax evasion. In addition to helping you with negotiation and representation, our tax attorneys are there to fight for your rights. Contact us to schedule a consultation with one of our certified tax attorneys. Evening and weekend hours are available by appointment.