Tax evasion is one of the most costly white-collar crimes in America today. While white-collar crimes are often positioned as “victimless”, tax evasion costs every legitimate taxpayer in this country substantial amounts of money every year.
Authorities are pursuing people committing tax evasion with increased persistence and treat these cases very seriously. In addition to facing legal repercussions, tax evaders may lose their jobs or professional licenses.
What is tax evasion?
Tax evaders illegally avoid paying taxes. Projections estimate that tax evasion costs the United States government $1 trillion every year.
How is tax evasion perpetrated?
Tax evasion involves misrepresenting income to the Internal Revenue Service. Misrepresentation may consist of:
- Underreporting income
- Inflating deductions
- Hiding money in offshore accounts
Why do people commit tax evasion?
Some people commit tax evasion simply because they do not want to pay taxes. Criminals commit tax evasion to avoid reporting their true income, as that would serve as an admission of guilt.
What are the penalties for tax evasion?
Federal tax evasion is punishable by imprisonment, fines, or both. Additionally, the state can bring charges against evaders under Missouri law.
How can the government prove tax evasion?
The first step is proving that an unpaid tax liability exists. Then prosecutors must also prove that the defendant purposely evaded their taxes. To get a conviction, a jury must find the defendant guilty of purposely evading a tax that they knew about beyond a reasonable doubt.
Tax evasion is a serious crime with serious penalties. Defrauding the government of taxes by hiding income or falsifying deductions can result in prison times, fines or both.