Tax fraud in Missouri is more than just a simple error in judgment. There are many kinds of tax fraud, each with different executions and penalties, and one kind that you can easily commit is tax evasion.
Tax evasion is a willful and illegal failure to pay your taxes. It involves both underpaying or totally avoiding taxes altogether. To be guilty of this crime, the IRS must establish that your tax evasion crime was deliberate. Otherwise, if your criminal defense attorney can prove that your failure to pay was due to negligence or a misunderstanding of the law, it is possible that you may only face civil penalties.
All American citizens and residents must pay federal taxes if their minimum gross income is $12,550 or above. However, there are many ways that people attempt to get around paying their taxes. They include:
• Underreporting income
• Falsifying IRS financial forms
• Claiming a nonexistent dependent
• Using a fake social security number
• Failing to file returns
Tax evasion is a federal crime; therefore, the IRS Criminal Investigation Division will be responsible for finding and investigating the case. If they find evidence that you have willfully attempted to evade taxes, they will bring their case against you to the Department of Justice for prosecution. Here, a federal prosecutor will decide whether or not to indict you.
If found guilty, you may have to pay heavy fines, serve time in prison or both. The amount of money involved and your prior criminal history will dictate the severity of your sentence.
Most people confuse tax evasion and tax avoidance. A tax attorney may be able to provide information about current tax statutes.
For personalized legal guidance, call our office at 417-882-9300 or submit this form to schedule a meeting with an attorney.