Tax evasion is a term we often hear, but what does it really mean? In a nutshell, it is a criminal offense where an individual or an entity intentionally avoid paying their tax liability. This can include underreporting taxable income, underpaying taxes, falsifying documents, falsely claiming business expenses, concealing assets, and claiming tax benefits on illegitimate dependents.
That scary part of tax evasion is that some people do it unknowingly. It is possible to make honest mistakes when filing federal income tax returns, and if the IRS notices inaccuracies, your return may be flagged for an audit. Fortunately, Paramount Tax Relief is here to help you ensure that you correctly file your taxes and can also assist you in the event the IRS initiates an audit.
What Happens If The IRS Selects My Return For An Audit?
If your return is flagged, the IRS will likely look into the type and amount of mistakes made. If the IRS notices that certain errors were made repeatedly or the full amount of income was not disclosed, this can land you in hot water. Knowingly and deliberately committing errors can lead the IRS to move forward with a criminal investigation.
It may be comforting to know that the IRS does not pursue a majority of these cases; in fact, in 2017, the IRS audited only 0.5% of tax returns and in the 2018 fiscal year, only 3,051 criminal investigations were completed. While these numbers are small, it is still necessary to file the most accurate returns possible to avoid paying additional taxes, interest, and penalties.
How Do I Avoid Running Into Trouble With the IRS?
To avoid an audit or being suspected of tax evasion, it is vital that you understand exactly what you need to be including on your tax return. That’s where the professionals at Paramount Tax Relief come in. We can ensure that you file accurately and on time, checking for any errors or inconsistencies that you might have missed.
At Paramount Tax Relief, we understand how the IRS works and have the experience and training necessary to keep you protected from any action or audit. We are dedicated to providing unmatched customer service — just take a look at our testimonials. Schedule your free consultation today and learn more about how our Sacramento area tax experts can assist you!