Evading Taxes on Your Tax Return – The Money You Save is Not Worth the IRS Problems You End Up Causing Yourself
In economic times when people are strapped for cash, it is tempting to cut corners when filing taxes in order to save some of your disposable income. After all, small tax savings from many different areas can add up to a substantial amount of money. However, no matter how tempting tax evasion may seem – whether it is small or large in sum – it is a terrible financial strategy for saving your money. Tax evasion is a severely punishable act and you will find yourself in very deep tax trouble with the IRS if you choose this route.
Recently, the IRS found a man guilty of attempting to evade both his personal taxes and FICA taxes by deliberately misreporting his income. The trail of evidence led to his guilty conviction.
CCH (http://tax.cchgroup.com/) reports:
Evidence Supported Conviction for Attempted Tax Evasion (Platts, CA-3)
June 22, 2009-An individual was properly convicted of willfully attempting to evade personal taxes and FICA taxes owed by his corporation because evidence at trial established the individual’s willfulness, the existence of a tax deficiency and an affirmative act constituting attempted evasion of the taxes. The government showed that the individual mischaracterized income he received from the corporation as a loan repayment, claimed unsubstantiated capital loss deductions on his return and recruited a bookkeeper to make the company’s tax documentation reflect that he did not receive a salary. Moreover, the individual, as the corporation’s sole shareholder and president, was responsible for corporation’s unpaid withholding taxes, but sought to avoid the tax liability by under-representing his assets and failing to disclose his income from other business ventures.
Instead of illegal tax evasion, it would be wise to invest time to learn what is legally tax-deductible. You may find that there are many ways through which you will be able to pay less tax and save money. Of course, it is also extremely important that you do not mischaracterize your personal expenses (not tax-deductible) and business expenses (tax-deductible). If you categorize your personal expenses as business expenses, you are committing tax crime and may be penalized by the IRS.
Follow me on Twitter: @taxresolution
More Tax Help, IRS News and Tax Relief Tips:
- Michael Rozbruch Interviewed in Opportunist Magazine
- Tax Help News: IRS Enforcement to Get Priority, Big Bucks in 2010
- Tax Resolution News: IRS Warns Against Frivolous Tax Arguments That Can Incur Severe Penalties
- Tax Help For Offshore Account Holders as Swiss Government Seeks to Salvage UBS Agreement
- Tax Resolution News: As Tax Day Nears, Don’t Fall Victim to a Tax Scam
Tags: Back Taxes, CCH News, FALSE TAX RETURNS, filing false federal tax return, income tax relief, IRS audit, IRS debt, IRS enforcement, IRS help, IRS problem solver, irs problems, IRS tax problems, IRS trouble, Michael Rozbruch, tax attorney, tax evasion, tax help, tax resolution, tax trouble, tax-deductible