Criminal Defense Lawyer Serving Ann Arbor

Will a tax mistake lead to charges of tax evasion?

Although you may dream of what it would be like if you didn't have to pay taxes, this isn't the way things work in the United States. It's imperative that you understand the tax code, even if you only have a basic working knowledge of what's required of you.

The IRS is fully aware of the fact that its tax code is complicated. They are also aware of the fact that people can and will make mistakes on their tax return. There is no way around this.

As a taxpayer, you should do your best to prevent mistakes, such as those that often come about when filing your final return. By submitting a tax return that is 100 percent accurate, you never have to concern yourself with owing more money in the future.

While tax mistakes are common, here's something else you need to know: Tax evasion is a crime.

An honest mistake is not the same as tax evasion. Instead, evasion is when you make a calculated decision to underpay your taxes. There are many ways of doing so, such as by hiding money overseas or "forgetting" to report cash earnings.

Tax evasion is a serious crime that has serious penalties. For example, a conviction could lead to a large penalty or fine, as well as time in prison.

Due to the complexities of the tax code, it's possible that people could be charged with evasion when they actually had no clue of what they were doing. This isn't fair, but it can definitely happen.

If you or a loved one is dealing with charges of tax evasion, there is no time to waste. You need to review all the information the IRS has sent you, while also understanding which steps you can take in the future to help protect your legal rights.