NEW JERSEY CRIMINAL LAWYERS

NJ Tax Crimes

Tax Crimes in the United States: How to Avoid and Consequences

Tax crimes are not new to the United States, but they have become more prevalent recently. Tax crimes encompass a range of white-collar criminal activities that can lead to serious consequences if convicted. If you’re audited, you’ll usually be required to pay unpaid fees, interest, and fines. However, tax fraud is a federal offence that may result in charges for white-collar crime.

Infringing one’s tax obligations may include tax evasion, filing false tax returns, submitting fraudulent documents, or failing to pay taxes or employment taxes at all. Tax evasion is among the most severe of those offences, as this act doesn’t only have anything to do with failing to account for all income but also entails overstating tax deductions.

It’s critical to keep in mind that an honest mistake on a tax return does not constitute fraud or any other kind of tax offense. The IRS only targets intentional efforts to deceive them while looking for signs of wrongdoing like understating income earned or having inadequate records expanding on this list includes failing to file a return, concealing assets or engaging in illegal behavior amongst others.

So who’s most likely committing these kinds of offenses? Self-employed service industry individuals commonly engage in these types of scams. This group is primarily paid in cash and operates businesses that depend on cash; therefore it’d be easier to understate income than through other means such as paychecks or direct deposits. Some of the most common occupations related to these unlawful acts include car dealerships owners/salespeople/restaurant owners/hairdressers/accountants/lawyers/doctors etc.

If convicted with any kind of willful (intentional) wrongdoing related Tax crime/ evasion below
are some penalties:

Attempting To Evade Or Defeat Paying Taxes
A felony charge resulting into 5 years imprisonment and fines ranging from $250K – $500K represents a
crime’s highest-degree punishment.

Tax Fraud And False Statements
Felony charges for tax fraud or filing false tax statements carry up to 3 years prison or fines up to $500K for
businesses and/or $250K per individuals, along with prosecution costs.

Willfully Failing To File a Return/Providing Information/Paying Taxes Timely
A misdemeanor that can earn you up to one year in jail or maximum fines of $200K for Businesses and/or
$100K for individuals along with prosecution costs.

If faced with such charges; it’s critical to retain an experienced attorney who is knowledgeable in tax regulations and trial tactics necessary to develop the most powerful defence available.

Staying away from carrying out Tax crimes has much to do with understanding your Tax obligations and circumventing any questionable activities that may lead officials’ concerns. The table below summarises some practical steps you could take:

Table: Steps to Avoid Committing Tax Crimes

| Tax Crime | Avoidance Tips |
|———————|———————————————————————————–|
| Understating Income | Keep track precisely of all income resources |
| Inadequate Records | Keep precise records about income sources, expenses, and transactions |
| Filing False Returns | Accurately give truthful information |
| Failing Employment Taxes | Collect workers’ payroll taxes correctly and pay owed amounts on time |
| Failure To Pay Taxes | Pay taxes on time, or seek extensions if necessary |

As a responsible citizen, it’s essential not to disregard your duty towards paying taxes. Although violating tax laws can have severe consequences, you can prevent getting into trouble by fulfilling your tax responsibilities accurately. If charged with any tax-related crime, always consult a skilled attorney who can provide valuable guidance through legal proceedings. Don’t let one simple mistake lead you down a path of regret.