| There are two categories of tax evasion. The first | | | | The best thing to do, of course, is to pay your taxes in |
| category of tax evasion is when there is a large | | | | full and on time. If you are having problems paying your |
| amount of taxes found to be due beyond the declared | | | | taxes in full and on time, you need to talk with the |
| amount. The second category of tax evasion is | | | | Internal Revenue Service or a tax resolution specialist |
| intentional tax evasion. | | | | as soon as possible. |
| In the lesser charge of taxes beyond the declared | | | | People facing income tax evasion charges are people |
| amount, you can face civil penalties of .5% of your | | | | who let things get way out of hand for far too long or |
| amount due, tallied at the end of every month until you | | | | started with a criminal intent not to pay taxes in the |
| reach a limit of 25% of taxes due for failure to pay. If | | | | first place. |
| you were unable to pay, the fine is the same but stops | | | | Most people do not fall into the second category of |
| at 5% instead of 25%. | | | | criminal intent. A startling number of people, however, |
| On top of this would come the civil charge of making | | | | let things go far too long when it comes to dealing with |
| understatements of the amount due. This charge | | | | the Internal Revenue Service. Do not let this happen to |
| tacks on 20% of the amount you owe. If you are filing | | | | you. |
| late, then depending on how late, it can cause heavy | | | | If you are having problems with the Internal Revenue |
| fines. Filing false or incorrect figures on your return or | | | | Service and back taxes, take measures to address |
| not being able to document why you got those figures | | | | those problems immediately. It is the key that in dealing |
| wrong can cost a penalty of $500. | | | | with the Internal Revenue Service, you do not want to |
| Filing a false statement, and willingly not filing at all can | | | | delay. The longer you wait, the more penalties, interest, |
| get you jail time. In worst-case scenarios, you can | | | | and fees add up, and the deeper your problem |
| face up to $100,000 in fines and up to 5 years in prison. | | | | becomes. |
| These are not the only income tax oriented charges | | | | So, whether you are preparing to handle your IRS |
| that can buy you heavy fines and even time in a | | | | back tax problems yourself or through the services of |
| federal prison. There are other things you can do that | | | | a tax resolution specialist, start negotiating as soon as |
| the Internal Revenue Service will punish severely as | | | | you can and avoid things like income tax evasion |
| well. | | | | charges at all cost. |