Tax evasion is the term used to describe the act an individual, firm or trust undergoes to attempt to not pay taxes illegally. It generally includes taxpayers deliberately misrepresenting or concealing the true state of their matters to the tax authorities in order to reduce their tax liability. This includes dishonest tax reporting methods such as declaring less income, profits or gains that were actually earned or overstating deductions. As more and more individuals are caught committing tax evasion, the tax gap, or the difference between the amount of taxes that should be collected and the amount that is actually collected, increases.
In some cases, tax evasion includes an unintentional mistake made by an individual on their returns. If you have unknowingly made an error, and the IRS is auditing you, it is time to contact a seasoned criminal lawyer to help protect your future.
When the IRS is looking for fraudulent tax statements from individuals, they often see the following as warning signs for tax evasion:
All too often clients will come to our firm with legitimate questions regarding their audit by the IRS. Many of them wonder what the difference is between a simple mistake and a conviction for tax evasion because they fear that their simple mistake will be viewed as fraud. If you or someone you know is being audited by the IRS, it is extremely important to consult with our firm before you reveal any information that can make you appear to be guilty.