Although the tax code is complex, the IRS generally recognizes two types of tax evasion. It is important for taxpayers to be familiar with what those two types are and that there are legal protections available if they have been accused of committing tax evasion and are facing criminal tax charges.
Civil tax fraud penalties
With tax season behind us, many New Yorkers are no longer worried about this process until next spring. However, for some individuals, this may be the beginning of a legal matter that involves tax fraud. While criminal tax penalties are serious and the more talked about tax crime, civil tax fraud penalties could also plague an individual.
Civil penalties for tax errors are steep
This blog has on previous occasions talked about how White Plains, New York, residents and those in the surrounding area who are not careful about filing and paying their federal taxes can wind up accused of serious crimes.
Criminal consequences for stolen identity refund charges
Whether one owes taxes or receives a refund, the information and details provided on a tax return must be truthful and authentic. If information is false or one files a return under a false identity, this could present serious issues. Much like identity theft results in criminal charges, one could face criminal tax liabilities if one files a tax return with another identity.
New York councilman guilty of tax fraud and other charges
With tax day around the corner, many are rushing to get everything in order and filed on time. Whether it is the rush of the filing or one's desire to reduce their tax liabilities, individuals in New York and elsewhere could face serious civil and criminal tax liabilities. Tax fraud is a serious matter, making it essential to explore the matter entirely. This can help one explain what happened and could even open up opportunities to reduce the penalties faced by the situation.
What is the difference between tax evasion and tax avoidance?
Whether you hand a stack of papers to your accountant or decide to handle them yourself, getting your taxes done is necessary each year. While there are some exceptions, if one is required to file taxes, he or she needs to do their due diligence to properly file them. This also means that the details included are honest, accurate and clear. Failing to properly fill out tax documents could have negative results. While certain filings can get confusing and complex, some situations cannot be brushed off as minor errors. In some cases, the state or federal government may assert that one is evading taxes based on the information provided.
How a civil audit can turn into a criminal tax case
It is without question that the U.S. tax system is complicated. This is why most Americans seek out the assistance of an accountant to complete their taxes. Despite the initiative to obtain professional help, if an individual is not forthcoming or takes steps to reduce their tax liabilities, this could result in significant penalties. While some may think he or she will face civil consequences, if it is determined that one took steps to obstruct or evade tax responsibilities, this could result in criminal penalties.
Tax opinions and tax litigation
Individuals in New York and elsewhere have tax obligations each year. While some years may be more than others, the reality is that one cannot avoid these financial obligations once it is established that a person owes taxes to the state or federal government. Despite this, some fail to meet these obligations for a wide range of reasons. In some cases, one does not have the finances necessary. In these cases, it is important to consider how this could impact them.
Claims of tax fraud can have serious legal consequences
Preparing and filing one's own income taxes is an esoteric exercise that New York residents must perform each and every year to avoid running afoul of the law. While many people have a good idea of what constitutes their wages and what deductions they may be qualified to claim, not everyone will get their taxes right on their first pass. When individuals make mistakes in the preparation of their tax documents, they may be flagged by the Internal Revenue Service as having committed tax fraud.
