QUESTION: Some of my income is paid to me in cash.Â If I do not report all of it, will the penalty be a fine?
Answer: Whether you underreport some, most, or all of your income, the penalties are severe!Â Do not think that the IRS will fine you and that is it!Â The IRS will consider you a tax cheat and you will be guilty of tax evasion, even for a the smallest amount of underreported income.
In a severe case, like the oneÂ below, the man faces up to five years in prison and a fine of up to $100,000!
John Patrick Armstrong, 45, of Raleigh, N.C., was indicted for tax evasion relating to individual returns for the years 2002 to 2004.
The government alleges Armstrong underreported his income from 2002 to 2004 by $1.5 million. In addition to the tax evasion charges, Armstrong is cited with failing to disclose his interest in or authority over financial accounts in a foreign country for the years 2002 to 2004.
Got tax questions about tax audits, wage garnishments, IRS bank levies, payroll tax problems, or tax relief in general? Call us today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a free risk-free tax resolution consultation.
No related posts.