| Tax evasion and tax avoidance are too distinctly | | | | There are three crimes that you can be convicted of |
| different things. Avoiding taxes is simply the practice of | | | | in regard to income tax evasion. |
| taking advantage of as many legitimate deductions | | | | The first crime under the penal code is tax evasion, |
| and tax credits as you can in order to lower your tax | | | | which can impose a fine of $100,000 and five years |
| liability. Evasion is the criminal act of not paying taxes | | | | imprisonment. |
| that you owe. | | | | The second punishable offense the Internal Revenue |
| The Internal Revenue Service has more than 300 | | | | Service can charge you with is filing a false income |
| agents dedicated to the investigating and penalizing of | | | | tax return. Under this charge, the Internal Revenue |
| taxpayers who attempt income tax evasion. | | | | Service does not have to prove that you had an intent |
| The Internal Revenue Service audits taxpayers at | | | | to evade your taxes, only that you did file false returns. |
| random every year, but most audits are due to | | | | Conviction can get you a $100,000 fine and up to three |
| unusual activities when it comes to filing income tax | | | | years in a federal facility. |
| returns. Certain actions will trigger an Internal Revenue | | | | The third crime of which you can be convicted under |
| Service audit such as, too many deductions in | | | | law is failure to file an income tax return. As a |
| proportion to earnings, and too little income claimed by | | | | misdemeanor, you can face 3 years imprisonment and |
| a person with a lot of assets. | | | | a $25,000 fine for each year you failed to file your |
| One of the rights you have as a taxpayer is the right | | | | income tax return. |
| to representation. Take advantage of it and hire a tax | | | | If you are facing the possibility of being charged with |
| attorney if you are faced with major IRS problems. | | | | income tax evasion, you need to hire a tax attorney |
| Contacting the Internal Revenue Service directly is not | | | | right away. Forget trying to negotiate with the Internal |
| recommended. After all, they do not have your best | | | | Revenue Service yourself. At this point, the Internal |
| interests at heart. They are considering the best | | | | Revenue Service not only sees you as an |
| interests of the federal government and their personal | | | | uncooperative taxpayer, but as a criminal. You are |
| career aspirations. They are not likely to work things | | | | going to need good, professional representation if you |
| out in your favor; they are more inclined to work things | | | | are going to avoid jail time. |
| out in favor of the federal government. | | | | |