We are a little more than a month into the new year. And while this may be a time of looking forward to what is to come, most of us must also look back over what transpired during the last year as we prepare our tax returns. Having to take out a pen and write a check to Uncle Sam is not on many people’s list of favorite things to do. However, not paying the government what they say is due can land you in serious trouble.
If a company or a person deliberately pays less than taxes than owed, they could be charged with tax evasion. Yet, tax codes can be complicated and accounting mistakes can happen. So what can you do to avoid receiving federal charges for tax fraud?
First, understand that making an honest error should not result in your being charged with tax evasion. To make a tax evasion case, the IRS must be able to demonstrate that you purposefully attempted to underpay your tax bill. An error on your part should result in no more than having to pay what is owed and maybe a fine.
It is important to fill out all tax forms correctly as doing otherwise could arouse the suspicion of the IRS. For example, if you overstate the amount of your expenses, it could appear that you are attempting to get larger deductions than those to which you are entitled. As a result, you could become the subject of an IRS investigation.
It is all too easy to make a mistake when filling out a tax form. It is also easy to make an error in judgment when acting in your own financial interest. If you commit an error that leads to an IRS investigation, you may wish to consider obtaining legal representation to help you answer any questions or to respond to any charges brought by the government. A Louisiana white collar crime attorney may be able to act on your behalf in working toward achieving your best possible legal remedy.