Don’t Make a Mistake: The Many Types of Tax Crimes and Tax Frauds

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Tax crimes—they famously brought down gangster Al Capone in the 1920s, but is it still a big issue? Yes, tax fraud is something the IRS keeps a close eye on, as they can use everything from computers to our social media accounts to see if someone is avoiding paying tax.

Tax law is complex, and criminals have been trying for hundreds of years to figure out the best way to scam the system. However, your best approach is to always pay your taxes fair and square.

Are you interested in learning more about some of the most common tax frauds? If so, keep reading to find out.

Tax Evasion

According to the IRS, tax evasion is a crime. It’s our legal duty to pay taxes, and if you try to cheat the government by evading tax payments, this is a serious crime.

Underreporting your income, claiming false deductions, or simply not filing at all are all common types of tax evasion. If you hide assets overseas or under someone else’s name, this is also a crime.

While many people make honest mistakes when filing their taxes, the IRS is able to deduce whether something is intentional or accidental.

Tax Fraud

If you’re trying to pay less tax by filing a fraudulent tax return, think again—you’re going to get caught. Some people think by not declaring all of their income, they will pay less tax.

However, the IRS has access to all sorts of records, including your bank details. If they notice your deposits coming in each year are much more than your declared tax, this is going to raise some red flags.

For example, cash deposits to banks under a certain amount don’t need to be reported to the IRS. However, frequent deposits just under the threshold are a telltale sign that someone is trying to fraud the system.

If you or someone you know is a subject of a tax crime investigation, you’ll want legal help throughout the process. Look for an expert IRS tax lawyer in your area to represent your case.

Failure to File

Every year, we know that our taxes need to be filed by April 15th. However, what happens if you don’t file?

Failing to file your tax returns can be considered a crime if the IRS suspects that you’re intentionally avoiding them. While the penalties for filing late are usually civil, resulting in a fine, that’s not always the case.

Stay in the Clear By Avoiding These Common Tax Crimes

With so many types of tax crimes, criminals are always trying to find a way to cheat the IRS. However, it usually ends badly—with prison time.

If you want to pay less in taxes, your best result is to hire an experienced accountant who can help you balance your records and find legal deductions. Always stay in the good books when it comes to the IRS and do things fair and square—although no one loves paying taxes, it’s an important part of life.

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Founder OF Postintrend.com started my blogging journey in 2015 In This Duration I learned more about blogging, SEO, SEM, Affiliate marketing and more kinds of stuff on the Internet. I love to share my information with everyone.

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