When it comes to white collar crimes, tax evasion is one that you will hear about time and time again. There are many reasons for this, including the fact that celebrities are often caught up in these cases.
As the name suggests, tax evasion is nothing more than a person or business that purposefully avoids paying the proper amount of taxes.
Here’s something many people don’t understand: There is a big difference between tax evasion and making a mistake on your tax return.
For example, just because you didn’t pay enough in taxes during the year doesn’t mean you’ll be charged with tax evasion. It simply means that you’ll have to pay the appropriate amount in the near future to catch up.
There are many forms of tax evasion, such as attempting to hide a large amount of income from the IRS. Along with this, underreporting income, regardless of the reason, can be considered a crime. The same holds true for inflating expenses as a means of lowering your taxable income.
Since there is so much gray area between making a basic mistake and the crime of tax evasion, innocent people are often times put in a difficult spot. They find that they are being charged with a crime that they did not commit.
By learning more about the details of tax evasion, you can avoid a situation in which you find yourself in trouble with the law. If this happens anyway, don’t hesitate to learn more about the charges and the defense strategy you can use to avoid a serious punishment.
Source: FindLaw, “Tax Evasion,” accessed Jan. 12, 2017
