Although the risk of an audit may be statistically low for the average individual taxpayer, are small businesses at a disproportionate risk?As background, the IRS employs certain red flags in its audit software. Since the IRS automatically gets copies of 1099s and...
Fraudulent tax returns hurt everyone. To combat this crime, the IRS is forced to devote costly agency resources. State and federal government budgets are deprived. And for the average taxpayer, an additional consequence this year will be delayed tax...
When it comes to tax evasion, the IRS cares about intent. This is why tax evasion, defined in Section 7201 of the Internal Revenue Code, requires the IRS to prove that a taxpayer purposefully underpaid or misrepresented his or her taxes.Examples of tax evasion include...
The IRS isn’t the only agency that will go after you on charges of tax evasion or tax fraud. The Connecticut Department of Revenue Service’s website also encourages individuals to report suspected tax fraud. Notably, the IRS also has local field offices, and...
Many Americans are familiar with the civil penalties that the Internal Revenue Service can impose for unpaid taxes. However, there are also behaviors that could give rise to criminal liability. To put it simply, an individual could serve time if convicted for filing a...
Tax liabilities are the category of debt that has the potential to haunt you. The IRS has strong collection tools, such as filing a notice of federal tax lien against your property or garnishing your wages. In addition, taxes are typically not discharged in...