Beware of Tax Crimes
Tax evasion is somewhat of a broad term that refers to the efforts of companies, firms, trusts, individuals, and other entities to avoid paying taxes through illegal means. Tax evasion typically involves a deliberate concealment or misrepresentation taken by an entity to avoid the levy imposed by the Federal Government of the United States.
Entities who participate in tax evasion are willingly hiding a truth or participating in an act to reduce their tax liability. The illegal maneuvers associated with tax evasion are taken by entities to avoid a certain aspect of taxation. In some cases, an individual or corporation will commit tax fraud to flee from paying an exorbitant amount of taxes, while other cases will result in evasion to conceal information regarding illegal business practices.
When a company participates in illegal activities they commit tax fraud to withhold their faulty business operations from IRS reporting. Tax fraud does not necessarily entail avoiding taxation, but instead, any filing of tax forms that contains misinformation that specifically hides or alters the individuals tax liability.
Dishonest tax reporting, declaring less income, capital gains, profits, overstating deductions, or filing any component of the application that alters the individuals income for their betterment is considered tax fraud.
Tax evasion is a criminal offense in the United States of America. The money collected through the levy is the main source of revenue for the Federal government. The revenues are used to pay for current expenditures and fund certain public services, such as: the military, public enforcement agencies, educational services, roads, etc. The difference between the amount of tax owed and the amount actually collected is referred to the tax gap. In 2008, the IRS estimated that Americans owed nearly $360 billion dollars in uncollected taxes.
