What is Connecticut tax fraud and tax evasion?

On Behalf of | Jun 16, 2017 | Tax Crimes

While few Danbury, Connecticut, residents are enamored of taxes, all need to pay the taxes that are legally due. Failures to do so can constitute tax crimes, such as tax fraud, which carries financial penalties inclusive of the amount owed and often fines as well.

What is tax fraud in Connecticut?

Tax evasion occurs any time that a taxpayer knowingly and willfully underpays their taxes or attempts to do so. When tax evasion occurs because the taxpayer intentionally made fraudulent statements with the purpose of evading taxes, that is tax fraud. In Connecticut law, tax fraud is governed by section 12-736 of the Connecticut General Statutes.

That section refers to tax fraud as willful attempts to avoid paying required taxes. This may include failing to pay taxes or failing to sign or return a tax return. Taxpayers who commit tax fraud are subject to penalties.

What are some of the penalties?

Those penalties include requiring the taxpayer to pay the amount of taxes that they owe, and possibly a fine of as much as $1,000. Simply put, anyone who willfully seeks to avoid taxes will wind up having to pay all they owe and very possibly more as well.

What about honest errors?

Of course, mistakes made in good faith are not treated as tax fraud in Connecticut. Laws against tax fraud are based on the willful evasion of payment of taxes and the intention to defraud. Thus, convictions for tax fraud require proof of having intentionally sought to evade paying taxes.

What should be done if honest errors are made?

Thus, if you realize that you made a mistake in good faith on a tax return, you should seek to correct it and pay any amount owed. Connecticut residents dealing with issues of this nature can consult with an experienced attorney to address those issues.

It is also a good idea to go over taxes with qualified professionals before filing them each year, to ensure that you don’t unintentionally underpay your taxes.

Source: FindLaw, “Connecticut Tax Fraud and Tax Evasion Laws,” accessed June 16, 2017