Tax evasion and tax avoidance are too distinctly different things. Avoiding taxes is simply the practice of taking advantage of as many legitimate deductions and tax credits as you can in order to lower your tax liability. Evasion is the criminal act of not paying taxes that you owe. The Internal Revenue Service has more than 300 agents dedicated to the investigating and penalizing of taxpayers who attempt income tax evasion. The Internal Revenue Service audits taxpayers at random every year, but most audits are due to unusual activities when it comes to filing income tax returns. Certain actions will trigger an Internal Revenue Service audit such as, too many deductions in proportion to earnings, and too little income claimed by a person with a lot of assets.
The Low Down: Helio Castroneves failed to report income from 1999 to 2004. The amount was $5.5 Million. If found guilty, he may be facing jail time of 3 years or more. And on top of that punishment, he'll be expected to pay all the taxes on the money plus interest and penalties and associated court fees. So what exactly did he do wrong to risk this kind of punishment from the IRS?
The Crime: Not reporting your income is a crime. There are a lot of freelance workers that think they can hide their money in offshore accounts like Helio Castroneves did. You can move your income to any bank you want. But you better report that money to the IRS if you want to stay out of jail and avoid extravagant fines.
The third crime of which you can be convicted under law is failure to file an income tax return. As a misdemeanor, you can face 3 years imprisonment and a $25,000 fine for each year you failed to file your income tax return.
The Scam Check-list: If the tax professional you are working with is guilty of any of the offenses listed below, watch out! They are only out to scam you! -They ask for your credit card number over the phone -They tell you that they're 100% positive your debt can be settled for Pennies on the Dollar -They are evasive about questions you ask them.
Wesley Snipes and Helio Castroneves. So file your back taxes! If you need help with filing your taxes or have any other questions about your issue with the IRS, now is a good time to seek professional help with getting your finances back in order.
The Low Down: Helio Castroneves failed to report income from 1999 to 2004. The amount was $5.5 Million. If found guilty, he may be facing jail time of 3 years or more. And on top of that punishment, he'll be expected to pay all the taxes on the money plus interest and penalties and associated court fees. So what exactly did he do wrong to risk this kind of punishment from the IRS?
The Crime: Not reporting your income is a crime. There are a lot of freelance workers that think they can hide their money in offshore accounts like Helio Castroneves did. You can move your income to any bank you want. But you better report that money to the IRS if you want to stay out of jail and avoid extravagant fines.
The third crime of which you can be convicted under law is failure to file an income tax return. As a misdemeanor, you can face 3 years imprisonment and a $25,000 fine for each year you failed to file your income tax return.
The Scam Check-list: If the tax professional you are working with is guilty of any of the offenses listed below, watch out! They are only out to scam you! -They ask for your credit card number over the phone -They tell you that they're 100% positive your debt can be settled for Pennies on the Dollar -They are evasive about questions you ask them.
Wesley Snipes and Helio Castroneves. So file your back taxes! If you need help with filing your taxes or have any other questions about your issue with the IRS, now is a good time to seek professional help with getting your finances back in order.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Bob Jain Credit Suisse & Steps For Consumers To Follow You have full permission to reprint this article provided this box is kept unchanged.
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