The IRS loses out on an average of almost four hundred and sixty billion dollars a year in unpaid taxes according to its latest estimates. Tax evasion, or illegally failing to pay your taxes, is considered a felony crime that can result in huge fines, time behind bars, or both. If you are tempted to cheat the system, here's what you'll be risking, according to IRS.gov: - Attempting to evade or defeat your taxes is as serious as fraud offenses can get. If you knowingly don't pay all of your taxes and get caught, you could face up to five years of jail time, a penalty of two hundred and fifty thousand dollars, or both. - Corporations can also face a fine of up to half a million dollars for tax evasion. - Falsifying a return could cost you the same fine amounts, along with three years behind bars or both. This includes lying about your income, making false deductions, or reporting dishonest charity contributions. - The IRS can also tack on a civil penalty of up to 75% of your unpaid tax, which is tied to the fraud. - Additionally, don't forget about your legal bills, plus the taxes you already owe. - The penalty for willfully failing to file taxes is 100 grand for individuals and twice that amount for corporations, along with a possible year in jail and legal fees tied to the taxes you originally owe. - If the IRS suspects you of tax evasion, they will likely conduct an audit, which could involve a face-to-face meeting with an IRS examiner. The duration of the process can vary based on the type and complexity of your case. - You will need to provide the requested information to the feds and either accept or reject their findings. - For...
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What happens when you report someone for tax evasion Form: What You Should Know
Report Fraud or Tax Fraud on a Business — IRS To report suspected tax fraud on the business of another taxpayer, you may submit an IRS Form 3949-A. This form asks basic information about the fraud and includes the name of the taxpayer (if the taxpayer has one). The Department of Revenue may investigate the How to Report Tax Evasion & Fraud— IRS.gov To report suspected fraud and fraudulent tax return preparers, enter the information on the IRS Form 3949-A on Form 8606. You may also call for further information. You must complete all details and provide the full information you have on the suspect. Furthermore, you must complete all Use this form to report suspected tax fraud and tax evasion by a person or a business. The IRS will contact you within two months. TAX FRAUD OR TAX VIOLATIONS Submit Form 4461 and include a copy of the IRS Form 3949 — Tax Return Fraud — Fraudulent Returns, which the U.S. Department of Treasury, U.S.
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