It’s hard to say whether deliberate underreporting of income is tax evasion or cheating. A government study revealed that self-employed restaurateurs, clothing store owners, car dealers, telemarketers, salespeople, and doctors were the most likely to underreport income. Only 6.8% of deductions were overstated, however. So, who is responsible for underreporting income? And how can people prevent themselves from making these errors?
If you can, do not talk to the IRS agent. Not only do they not care about your personal problems, but talking to them strengthens their position. And, in most cases, giving excuses will only lead to further investigation. Lying is just as serious as tax evasion. You are not likely to get away with such a mistake, but you may want to consider hiring an attorney to protect yourself from the pitfalls of tax evasion.
While the IRS Criminal Investigations Division is responsible for pursuing criminal tax prosecutions, this division usually begins its investigation based on a tip from a disgruntled former employee. Agents may show up at a taxpayer’s home or business unannounced. In these cases, the IRS criminal defense lawyer will know the tax agents and the federal prosecutor overseeing the investigation. If you do not want to end up in jail, consider hiring a federal criminal defense lawyer. They will have the necessary experience and know how to make the case against you the best one possible.
Fraudulent tax return filing can result in jail time or civil penalties, said an experienced IRS lawyer in Oregon. Depending on the circumstances, fraud can lead to criminal charges, such as up to five years in prison and a $250,000 fine. If you fail to file a return or make false statements, however, your punishment will be less severe. In many cases, you will have to serve 80 percent of your prison sentence if convicted of tax fraud. So, if you’re trying to get out of this trap, do it now!