Tax Evasion

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about IRS Tax Penalties and other Tax Relief topics.

What is tax evasion?

Tax Evasion

Tax evasion is an illegal act under the IRS tax law. When you partake in any of the following activities, you are committing tax evasion:

  • Knowingly not reporting income,
  • Underreporting income, or
  • Providing false information to the IRS which results in improper income reporting, or
  • Deliberately underpaying taxes
  • Understating a reportable transaction
  • Substantially understating your taxes. This involves having the amount of your income taxes on your return being substantially less than the actual tax amount that you owe the IRS.
Whenever you are involved in tax evasion, in general, the severity of the action will determine whether you face an IRS tax evasion penalty or a criminal action case. For instance, substantial transactions will more likely face criminal action whereas a smaller amount transaction will face a penalty. That is a general statement. The entire subject area of tax evasion can be complex with varying factors determining what treatment the IRS will give it.

As can be seen, in order to commit tax evasion, you must not be using any good faith. Plus, you had every intention of committing this crime. You are exhibiting a blatant disregard for the IRS tax laws. A blatant disregard consists of being reckless, careless, or having intentional actions.

The penalty for tax evasion is criminal in nature. This means that you may be facing criminal prosecution for it.

   

Comments

11/7/2007 7:06:30 AM
tony said:

will it be aganist the law to file somebody else's dependt but them staying in your household for ten or more months?


12/22/2008 7:24:31 PM
ldydrives said:

i asked the wife if i could claim my place of residence on my taxes since i live and use my home for my trucking establishment on my taxes and she said that she rather not due to the fact that they don't report it as a income.i called and asked her if she had anymore places near where i lived because my sister and brother in law were looking for something closer to his job,she said she had another trailor and a three bedroom one that was bigger near the york county line.
i haven't given it much thought till the wouldn't work with me on my rent after i offered to pay them $125.00 and my daughter offered to pay $100.00 on my behalf till all the rent was caught up.
in the past four years i have suffered multitudes of set backs since my near fatal car accident on Dec.10,2004 which put me into an ICU unit for 1 month and rehab for two weeks at Richland Memorial Hospital then i was in a Commercial Motor Vehicle Accident on November15,2005 out in Ehrenburg,Az that put me out of work for three months,then i went through a Commercial Motor Vehicle fire on September 25,2008 which took $9,000.00 of personal items,clothes that can't be replaced,electronics including t.v.,dvd player,c.b. radio they don't market anymore,satellite radio,Magellan GPS,SCDL,kids social security cards & berth certificates and paper money,then less than two months later a Commercial Motor Vehicle driver falls asleep at the wheel and comes across a two lane highway while under construction then my mother passes away.
All of my bills are behind along with my securement of rental on my place to live,amongst all of this tragedy i had to make sure my grandchildren and children had food to eat while myself did the best that i could while i was away from my place to stay.
I have documents of all said tragedy that has occured including an eviction notice that i received on December 22,2008.
The forsaid landlords husband has a remodeling bussiness as a mainstay of employment.
I have been renting from the forsaid landlords since the week of July 4,2007.
I have fulfilled my one year contract and am on a month by month renting and a "verbal" "stay as long as you want because we like renters like you contract"given by the wife out in the front of my place to stay.
I have told the wife that i had the things to fix the whole in the ceiling where my youngest son was trying to get away from the field mice that kept coming into my place to stay,i have told her that i have the things to fix the drawer which come apart when my son closed the draweri have also told her that i would replace the carpet from where my son and his friends let cigarettes fall and burn the carpet due to the fact it was new carpet when i signed the rental agreement.
I have contacted the wife on 2 or 3 occassions to come look at and fix the cicuit breakers that controlled the major fuctions of the 120 volts outlets in the place of rental that i stay.
The month of September 2008 even though i DID NOT HAVE ANY HEAT IN THE RENTAL UNIT I STILL PAID THE FULL AMOUNT OF RENTAL.My daughter and grandchildren and oldest son had to go stay with my sister while there was no heat.
Now I have no where to go or rent or the money to rent another place nor do my son,daughter and grandchildren have a place to go to due to the fact the landlords will not work with me on my rent.
I ask you does some of this situation not sound like they are evading paying the government for the property they so rightfully should?
Oh and they do have at least two other properties that they may not be claiming as an income.
Your Truly,
Ldydrives


10/1/2009 2:26:22 PM
pradip shah said:

I would like to report evasion of service tax with authenticated documents tenable in court. request send me detailed connect details-Ahmadabad. service tax office




Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Tax Relief Tip Site? Request a Tip Now!


Guru Spotlight
Byron White