Could a Mistake Lead to Tax Evasion Charges?

Many people find taxes difficult to complete. Even if you feel that you have the right information to complete your forms, you may still feel as if you have made mistakes. This type of fear often comes along with dealing with the Internal Revenue Service as you, and many others, certainly do not want to face an audit or situations that are more serious.

Of course, the possibility does exist that you could fall into such a situation, and as a result, you may need legal assistance. If you stand accused of tax evasion, knowing the best way to approach your case may seem out of your reach. Nonetheless, information on tax evasion may prove useful to you.

Could mistakes warrant charges?

In the majority of cases, tax evasion charges do not come about due to simply making mistakes on your tax forms. The IRS knows that the necessary forms for filing your taxes can take time and become complicated. Plus, if you attempt to file your taxes on your own, trying to understand tax deductions and credits can feel overwhelming, and you may find yourself guessing when it comes to filling out certain forms.

Because of these difficulties, the likelihood of criminal action for a minor mistake remains low. Of course, if mistakes seem consistent and purposeful, those issues could result in an audit or actions that are more serious.

What constitutes tax evasion?

Most commonly, tax evasion takes place when an individual under-reports income. If income does not get reported on tax forms, the government cannot levy taxes against it. This type of situation often takes place in professions that routinely deal in cash, such as waiters and other tipped workers, hairdressers and retail business owners. When dealing in cash, there is less of a chance of discovering under-reporting due to a lack of records when it comes to the transfer of money.

Additionally, you could stand accused of tax evasion if the government suspects that you misrepresented your circumstances. If it appears that you attempted to claim more deductions than your situation warrants or took other similar actions, you could potentially come under investigation.

If you find yourself facing charges for tax evasion, you may feel confused and fearful about the turn of events. In hopes of getting a better idea of what to expect from the allegations, you may wish to gain more information that could help you better navigate your legal circumstances.