Paying taxes is often unavoidable, especially for business owners. In fact, someone who runs a Connecticut business likely has numerous taxes to pay, including state employment taxes, income taxes and federal unemployment taxes. While it may be tempting to hold back taxes and claim them as profits, business owners who do so are subject to heavy penalties if the government catches up with them. Two restaurant owners are currently facing criminal charges for tax evasion and other accusations.
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.
Connecticut residents who pay attention to the news have probably read an awful lot about Paul Manafort. He was the campaign chairman for President Donald Trump who is accused of bank fraud and tax evasion. Both are serious crimes with significant consequences if prosecuting attorneys achieve a conviction.
If a person fails to fully report his or her income and pay the proper amount in taxes, the government is likely to find out. The Internal Revenue Service does not take tax evasion lightly. While it may take time, Connecticut residents who intentionally, or unintentionally, underreport their income in order to pay less in taxes are likely to hear from the IRS eventually.
Business owners will do what they can to limit their tax liability. In doing so, some may make mistakes that could cost them dearly in the end. Recently, the owner of Pasquale Furano Landscaping -- a 48-year-old male -- recently opted to enter a guilty plea rather than be indicted for tax evasion.
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.
Business owners small and big alike must often rely upon the assistance and services of others to complete work-related tasks and assignments. Business owners must not only attempt to find an individual who possesses the necessary skills and experience, but they must also take care to ensure that the individual hired is properly designated.