Crimes Involving Erroneous Payment Of Taxes

Crimes Involving Erroneous Payment Of Taxes

The Internal Revenue Service (IRS) gauges that only 0.0022% of the taxpayers are convicted with tax crime each year. Individual taxpayers have a higher rate of tax cases as compared to corporations. The tax-related crimes are detailed in the Tax Crimes Handbook released by the IRS in 2009. Those who don’t comply with the tax code commit either tax fraud, tax evasion, or tax negligence.

  • Tax fraud is a conscious attempt to escape from paying the right taxes. This crime is committed when a specific person or business performs the following:
    • Not being able to file an income tax return
    • Failing to pay overdue taxes
    • Failing to pay all of the income received
    • Making false claims
    • Making and submitting a fake income tax return
  • Tax negligence involves failing to make an attempt to follow the tax code. For example:
    • You claimed that you are eligible for a deduction without checking it first
    • You carelessly filed your ITR
    • You failed to maintain sufficient records that will verify the deductions you made
  • Tax evasion is a concept under tax fraud. It involves taking deliberate steps to misrepresent your taxable income. It should involve concealment or deceit. You commit this crime when you:
    • Hide sources of income
    • Underreport your income
    • Use the wrong social security number
    • Claim that you have a dependent that doesn’t exist
    • Claim that a personal expense is part of a business expense
    • Fraudulently claim deductions


Crimes for erroneous payment of taxes may be punishable criminally and civilly. A taxpayer may be asked to pay a fine, render jail time, or both. The government finds it difficult to support tax fraud cases. They need to prove that the taxpayer has intentionally violated the very complicated Internal Revenue Code. This is why the IRS normally prefers to settle such cases with civil penalties.

Consult a Criminal Law Attorney for Tax-Related Offenses

There are a lot of legal ways in order to decrease the tax you need to pay. You can donate to a charitable institution or utilize a 401(k) or IRA. Your business, car and home can also be used for reducing your taxes.

Do you feel that you are not guilty of the violations being charged at you? Or is the error seen in your ITR an honest mistake? Consult a criminal law attorney to help you with your case.

Written by Kellie Bertels, an attorney at Bandre, Hunt and Snider in Jefferson City, MO. Bandre, Hunt and Snider are the best attorneys Jefferson City MO have to offer.

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