Every year, Little Rock residents work to file their taxes by the April deadline. While some may owe the government money, others may expect sizable refunds from the Internal Revenue Service. Those who fail to pay their taxes or who engage in other actions that may be considered evasive may be charged a very serious white collar crime.
Tax evasion is the crime of not paying enough in taxes. It must be done intentionally by a ta payer and not accidentally or unintentionally. Tax evasion may involve the hiding of income or assets to lower one’s tax basis and decrease their apparent tax liability.
As stated, tax evasion is not accidental or inadvertent. A person who makes an honest mistake while processing their taxes and underpays the government does not possess the requisite intent to commit this serious crime. Intent is an important element in many criminal actions and is at the heart of the crime of tax evasion.
Tax evasion is considered criminal when a person intentionally fails to report all of their income or a business underreports its earnings. In some businesses, workers are paid in cash; when there is no record of a person’s income, it is up to them to accurately state how much money they made. Other situations may also expose individuals to claims of tax evasion.
Tax evasion is a form of fraud and is an intentional act. Arkansas residents who make accidental mistakes on their tax returns should be prepared to correct them but should not expect to be charged with tax evasion, Attorneys who work with white collar crime clients can give individuals more specific information on this particular charge. This ultimately could help one better navigate this matter, resolve issues and even help them avoid penalties.