What's considered cheating on taxes? And what's the harshest penalty?
2007-01-06 15:52:26 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Okay so I understand the whole cheating on your federal taxes. But what about state taxes, would it be considered cheating not to claim use tax on things I got off the internet?
2007-01-07 02:45:35 · update #1
Fraud generally involves the preparation and filing of false income tax returns by persons who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns. Preparers may also manipulate income figures to obtain tax credits, such as the Earned Income Tax Credit, fraudulently.
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Tax evasion is a risky crime, a felony, punishable by five years imprisonment and a $250,000 fine. The IRS will sell off your possessions to reclaim the money stolen through fraudulent activities. People lose their jobs, homes, money, freedom and the respect of their peers.
2007-01-06 21:59:43 · answer #1 · answered by Meg 2 · 0⤊ 0⤋
Tax evasion is an illegal practice where a person, organization or corporation intentionally avoids paying his/her/its true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties. There is a difference between tax minimization/avoidance and tax evasion. All citizens have the right to reduce the amount of taxes they pay as long as it is by legal means and all citizens usually do any way they can and they are suckers if they fail to use the "tax code" to their advantage. So are you calling all citizens who follow the law and legally reduce the amount of taxes paid "cheats and freeloaders"?
2016-05-23 01:48:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Knowingly manipulating your taxes in order to owe/pay less tax.
Jail, Prison, Wage Garnishment, Audits, Back Up Withholding....which one do you think is the harshest?
2007-01-06 16:02:51 · answer #3 · answered by T H 4 · 0⤊ 1⤋
Either leaving something off your return that should be there, putting something on your return that should not be there, or not filing at all.
Harshest penalty - prison.
2007-01-06 17:04:05 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Anything you do to avoid paying due taxes. Jail.
2007-01-06 15:55:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
under reporting your earnings, hiding your earnings, making up deductions.
How about being audited the rest of your frickin' life? Jail, penalties, etc. etc. etc.
2007-01-06 15:56:13 · answer #6 · answered by Anonymous · 1⤊ 0⤋