Are tax fraud and tax evasion the same thing?

On Behalf of | Sep 14, 2018 | Tax Evasion

It is not uncommon for certain terms to be used interchangeably. Tax fraud and tax evasion are often considered to be one in the same, but the truth is, tax fraud is just a type of tax evasion. Here is what Connecticut laws say about tax evasion and tax fraud.

If a person purposely makes fraudulent statements on his or her tax return, he or she is said to have committed tax fraud in an effort to evade paying his or her due share in taxes. The penalties for fraud include a fine of up to $1,000 and having to pay the amount evaded to the IRS. In order to be convicted on a tax fraud charge, prosecuting attorneys have to be able to prove that the accused willfully attempted to evade his or her tax obligation and had the intent to defraud.

If a person willfully fails to pay taxes, file returns or supply records, he or she is said to have committed a willful violation of tax evasion. The penalties for willful violations include fines of up to $5,000 and/or up to five years’ imprisonment. It is possible for a person to be charged with both tax fraud and willful violations at the same time.

The key word in any tax fraud or tax evasion case is intent. Mistakes made on tax forms is not considered intent to defraud. Connecticut residents who are accused of these tax crimes can turn to an experienced tax attorney for help in resolving the matter quickly and quietly.