| Paying taxes can be hard, but not paying them at all or | | | | to pay, only the 0.5% becomes 5%. Next thing that'll be |
| doing something that could be classified as an act of | | | | penalized under the civil classification is none other than |
| tax evasion can make things worse, if you're caught | | | | making understatements. Lots of hoping chaps do this, |
| that is. I'm not saying that you should use "methods" | | | | by declaring that a lesser income than what they |
| that can keep you from making the payments; I'm | | | | actually earn, so that they may taxed lesser. |
| warning you or telling you that there will be | | | | Here you could be charged up to 20%. Another way |
| corresponding penalties for tax evasion. Now in | | | | to join this "club" would to file information late, which |
| general, there are two categories that you may fall | | | | would have a corresponding penalty of 15 to 50 dollars, |
| under when charged with such, the first being | | | | depending on how late. Lastly, we have filing false or |
| dependent on the amount you declared. A large | | | | wrong figures in your return, or lacking information as |
| amount of income tax due contrary to the declared | | | | to why the figures ended up like that - this will be |
| amount can get you tagged "tax evader". | | | | penalized up to a whopping 500 bucks (ouch). These |
| The IRS is strict when it comes to this, so you better | | | | are only the minor offenses, so without further delay, |
| watch out. The next category you may belong to | | | | it's time to get down to the acts being punished with |
| would be intentionally avoiding the payment of taxes. | | | | possible jail time. First we have making false |
| There are a lot of chumps ranging from the low class | | | | statements. Then we have the filing of fraudulent |
| to the high class doing this, particularly the latter (coz | | | | returns, or willingly not filing a return at all. |
| they have to pay more, naturally). What the Internal | | | | There are some other offenses that you may commit |
| Revenue Service needs to know is that you knowingly | | | | that are considered so severe by the IRS, that they'll |
| avoid the payments for them to charge with the | | | | be forced to resolve the issue by taking it to the court. |
| offense - so what are the consequences for tax | | | | Yes you can be put on trial for the acts mentioned, as |
| evasion? Well again there are two categories here | | | | well as others. And yes it's very possible for you to hit |
| you may fall under as well, so let's start with the | | | | the slammer for some time. These tax evasion |
| category carrying charges of "lesser" gravity. | | | | penalties can reach the limits of severity - if your case |
| First off, we have civil tax penalties; under here there's | | | | is considered to be real bad, you can be charged a |
| failure to pay, which has a penalty of up to 0.5% of the | | | | fine of up to 100,000 dollars, and a 5 year sentence in |
| amount due after each month. The interest will pile up, | | | | jail. If you don't want that happening to you, then it's |
| but seize once it has reached its limit of 25%. Next | | | | best that you do NONE of the mentioned acts, and |
| offense would be not being able to file in the first | | | | find out what the others are. |
| place, which will have the same punishment as failure | | | | |