What is the biggest tax evasion?
Tax evasion is a criminal act that can lead to pressure on those involved. Given this premise, do you know What is the biggest tax evasion?
Before knowing What is the biggest tax evasion? It is important that you have full knowledge of what is tax evasion?
The federal law of the United States of America describes tax evasion, also called tax fraud, as the intentional unlawful attempt by a taxpayer to evade the assessment or payment of taxes imposed on him by federal law.
When tax evasion is proven, those involved may be sentenced to a fine or even imprisonment. It is important to mention that in the United States most taxpayers pay their taxes on time.
It should be emphasized that tax evasion is not related to tax avoidance, the latter is legal and is used for personal benefit to reduce the amount of taxes paid per year.
This means that in the United States a person can legally avoid paying some taxes by buying a smaller amount of things subject to sales tax, while tax evasion is illegal.
Here’s all you need to know if you are abroad:Can I file my US taxes from abroad?
This is the biggest tax evasion?
As mentioned above, it is not a crime to reduce personal or corporate income taxes through the tax benefits offered by the U.S. tax code. However, if you resort to fraudulent tactics in order to avoid paying taxes, you can be penalized with a fine or imprisonment.
If you are wondering What is the biggest tax evasion? You’ll find out below:
Businessman Walter Anderson
Walter Anderson, made millions of dollars after the breakup of AT&T in 1984.
The businessman was found guilty of evading approximately $200 million in taxes, making him the biggest tax evader in the United States.
According to reports in 1998, Anderson paid 495 in taxes on $67,939 dollars of income. It should be noted that the IRS claimed that the businessman earned approximately $126 million dollars that year.
Walter Anderson hid his income through offshore corporations and was sentenced to nine years in federal prison for biggest tax evasion.
What can happen if you are detected for tax evasion in the United States?
According to 26 U.S.C. § 7201, anyone who deliberately tries to evade taxes or fails to pay taxes due is committing a crime.
Those found guilty of tax evasion are fined up to $100,000 and if the case is very serious can be sentenced to up to 5 years in prison. It should also be noted that the defendant must pay for the trial and any other penalties.
On the other hand, companies that are accused of tax evasion can be fined up to US$500,000.
In order to charge a person or company with tax evasion, the government has the task of establishing that the evasion was intentional. The government uses several methods to prove evasion but the most common is determined when an individual or company personnel deliberately destroys records or conceals the source of their income.
Similarly, for dependents of other taxpayers, you should refer to box B of the Form 1040 instructions and Form 1049-SR.
Likewise, there must be an underpayment of taxes, and as a last point, there must be concrete evasion, so evidence is needed to determine that the individual or company deceived the government by not declaring the income.
Can I go to jail for tax evasion?
All this leads us to conclude that you will not go to jail if you make an honest mistake when filing taxes. It should also be noted that tax law violations are civil and not criminal offenses, so if you are audited and it turns out that you owe money, you will be subject to a civil, not criminal, lawsuit in order for the government to recover the money.
However, if there is a small chance of going to prison, this occurs when it is proven that the individual accused intentionally deceived the government, when this happens the individual or company accused of evasion is subject to criminal prosecution.
Now you know What is the biggest tax evasion? And what are the consequences of tax evasion.
If you are about to file your taxes, this will interest you:How do I prepare my US tax return?
