The consequences associated with tax evasion

On Behalf of | Aug 2, 2019 | Tax Evasion

Tax law is confusing. Paying taxes is not always a straightforward thing. Many Connecticut residents do their best to file and pay on time, but some make mistakes or let their taxes slide. Those on the latter side of this equation could face some severe consequences if they are ever accused of committing tax evasion.

Tax evasion is purposely avoiding paying taxes or lying on tax returns in order to reduce the amount owed. The consequences for such actions include jail time and fines, on top of paying the taxes owed along with any interest and penalties tacked on by the Internal Revenue Service. At the end of the day, committing tax evasion is just not worth it.

If the IRS suspects a person of committing tax evasion, it only has so many years to prosecute. The statute of limitations in such cases is three to six years from the date of the filing in question. If charges are not brought in the appropriate time frame, the government loses out on its opportunity to collect and hold violators accountable for their actions.

Now, some make honest mistakes on their taxes. This is not tax evasion, as long as one can prove it was a mistake and not intentional avoidance of paying what is owed. Still, fighting the IRS even when one knows no crime was committed can be a terrifying thing.

Connecticut residents who stand accused of tax evasion, regardless if there is merit behind the charge, can turn to legal counsel for assistance with fighting the allegations made against them. These cases are stressful, and they can take time. However, with help, the best possible outcome can be achieved as quickly as possible.