What Happens if I'm Found Guilty of Tax Evasion?
Tax evasion is a serious crime that can result in severe penalties and legal consequences. If you’re found guilty of tax evasion, the repercussions can be significant and long-lasting.
Here’s what you need to know:
First and foremost, tax evasion is the intentional act of not reporting all or some of your income to the government in an attempt to avoid paying taxes owed. This can include failing to report income from various sources, underreporting income, claiming false deductions or credits, or falsifying tax documents.
If you’re found guilty of tax evasion, the consequences can include fines, interest charges, and even jail time. The specific penalties you may face will depend on the severity of your offense and the amount of tax owed.
Consequences of Tax Evasion
In general, the IRS can assess a penalty of up to 75% of the underpaid tax for cases of fraud or willful tax evasion. You may also be subject to criminal charges, which can result in hefty fines and up to five years in prison.
Additionally, being found guilty of tax evasion can have a significant impact on your personal and professional reputation. It can result in damage to your credit score, difficulty obtaining loans or credit, and even loss of your professional license in certain industries.
How to Prevent Tax Evasion?
To avoid the severe penalties and legal consequences of tax evasion, it’s important to file your taxes accurately and honestly each year. If you’re unsure about any aspect of your tax return, consider consulting with a tax professional or using online resources to ensure that you’re reporting all income and taking advantage of all eligible deductions and credits.
If you find yourself owing back taxes to the IRS, sign up for your free tax consultation. From this call, you’ll be able to determine if you qualify for our services and which tax relief program will work best for your unique situation.
TaxRise has helped thousands of taxpayers just like you resolve their tax issues and erase their tax liability. Book your call and get started today!
Start focusing on enjoying your retirement or managing your disability, rather than worrying about how to pay your taxes.