As Benjamin Franklin said, “nothing can be said to be certain except death and taxes.” Taxes are never going away. It is every person’s responsibility to pay them. There are those in Connecticut who may struggle to do so or may be accused of taking steps to avoid doing so, however. These individuals may then be accused of tax evasion or tax avoidance.
Tax avoidance is when a person tries to minimize the amount he or she owes in taxes by using the tax code in order to take legitimate deductions or shelter income. This is a legal move, but one that does have to be taken carefully. Taking too many deductions is likely to flag one’s return for an IRS audit, which can result in one having to pay significant fines.
Tax evasion is far different from tax avoidance. If a person is accused of tax evasion, it means that he or she is accused of not reporting income and not paying taxes. If this turns out to be true, he or she may face incarceration, fines and a number of other consequences.
Whether one is dealing with accusations of tax avoidance or tax evasion, an experienced attorney may be able to help. Going up against the Internal Revenue Service can be intimidating for anyone in Connecticut or elsewhere who is not well versed in tax law. With legal counsel at one’s side, the necessary steps can be taken to tackle the problem head on in the hopes of achieving a solution that serves one’s best long-term interests.
Source: thebalance.com, “What Is the Difference Between Tax Avoidance and Tax Evasion?“, Jean Murray, Accessed on Sept. 27, 2017