Law Blog 4 Fighting Abuse

One of the most damaging crimes someone can commit for themselves is tax evasion. Many people cheat a little on their taxes, while others might hide large sums of money in overseas bank accounts. However people try to hide their income, there is likely to be a significant risk in not reporting your income to federal and state revenue services. It is treated tantamount to stealing and will almost always result in conviction if caught.

The Difference Between Avoidance and Evasion

First, it is important to draw a line for anyone who is not sure whether that deduction they took will land them in hot water. Tax avoidance is when someone usesx the tax structure to their advantage to make legal deductions to their tax burden.

On the other hand, when someone uses illegal means to avoid paying taxes, they are practicing tax evasion – which insinuates that they willingly tried not to pay taxes. In many cases, there is a further line between those who mistakenly misfile their taxes and those that take specific actions to avoid paying their taxes.

The Facts About Tax Evasion

Every year, the United States government estimates that more than $345 billion (2007) is not paid by those who owe it to the federal government. That is equal to about 14% of the total gross revenue of the United States and is thus a very serious issue, punishable with prison time if severe enough. Some of the most famous tax evaders are the law breakers who make a great deal of money through illegal channels. The law still requires that all income be reported, so these individuals are often charged with tax evasion and can spend many years in jail as a result.

Anyone who fails to file a return in the United States will owe a percentage penalty for their late payment. Those that do not pay for prolonged periods of time will still be subject to repayment, but may also be subject to jail time for the avoidance. Most of these cases are handled in civil court, but this can elevate when illegal actions are taken to avoid taxes.

This article is not intended to provide legal advice. If you need assistance with a tax evasion case, contact a lawyer immediately.

Learn more about handling a tax evasion case with the help of Will & Will LLP – Riverside, CA criminal defense attorneys.