The managers to collect up to 3.4 trillion dollars annually from the United States taxpayers. Although 3.4 trillion dollars is quite significant it is good to note that this is not even a scratch of what is owed to the IRS. The main reason why this disparity is quite huge is tax evasion. Tax evasion can be committed both wittingly and unwittingly and to learn more about it you can visit the page. The illegal underpayment or non-payment of taxes is referred to as tax evasion. When one willingly avoids to pay taxes or one unknowingly does not pay their taxes then this can be described as tax evasion.
Tax evasion is considered illegal by both the state and the Federal Government. The penalties for people who intentionally failed to pay their taxes is quite steep. There are two common terms used in taxation, and this is tax evasion and tax fraud, and it is important to note that they can be used interchangeably. The words are usually used interchangeably, but they are also used to describe different actions.
If you evade your taxes then that is something that may make you land in jail. The punishment for tax evasion is jail term as well as high and hefty fines.
Understanding IRS Levy
The most powerful weapon that is used by the IRS when it comes to tax evasion penalties is usually a levy on your bank account. Bank account levy is usually set in a bank account to siphon portions of the money you owe the IRS. It is important to note that you did not have to give the IRS permission for them to place a levy on your bank account. You can try this service to help you remove a levy on a bank account if you have one.
Another question that you will find us commonly is whether concealing any non-primary income is tax fraud. Well the answer to this question is yes and whenever you consume any form of income then the IRS will count it as fraud. This information is necessary especially for people who work on different side hustles and failed to report it. It is recommended that use the general rule of knowledge that the IRS is already aware of all the income have and therefore you should report it.
Ways To Deal With Tax Fraud
If you are being audited and you think that you may be charged with tax fraud then it is essential that you get professional legal help in this useful company that specialise with tax matters. When you are preparing the tax forms it is essential that you get certified accountants to offer their services such from this useful company.