Tax law is not always easy to understand. With complex terms and conditions, finding yourself in trouble with the IRS may prove avoidable if you get a basic grasp of some of the more common illegal practices. Evasion is one that many may commit without any intention.
To ensure that you do not fall into this category, consider the elements that may contribute to a tax evasion charge.
Is there an income benchmark?
Any income earner may find themselves up against a charge of tax evasion. While the issue may prove more prominent and common in higher-income earners, anyone can perpetuate the crime. Tax evasion may occur more in higher earners because they usually end up paying more in taxes. However, anyone with property or assets may want to avoid moving into a higher tax bracket by trying to avoid paying their fair share of income tax.
What goes into evasion?
The hallmark of tax evasion is deception. It is one person purposely getting out of paying taxes by moving assets. Some people do this by creating fake companies or accounts. Others simply establish accounts outside the jurisdiction of the United States and transfer assets there. In some instances, a taxpayer may move money to a minor’s account.
Not everyone who moves assets is doing so with the intent of hiding it from the IRS. Depending on how the situation plays out, an evasion charge may prove easy to rectify if you can prove that you made the transfer or movement for other reasons.