Illegal activities relating to tax evasions?

Question

Hi,

I am currently doing a report on different methods of tax evasions. I know that pyrmading, paying workers in cash, etc.

But how about people doing businesses online? Online stores, such as selling replicas and any other fraudulent activities? Can this also be used as another example of tax evasion? Because surely they wouldn't file taxes when their business is abusing others' copyright or trademark, right?

Can someone help and clarify that for me, because if possible, I really want to include it in my papers?

Thank you very much.
Lelia

Answer 1

Here is a link from the IRS website that might lead you in the direction that you are looking

http://www.irs.gov/compliance/enforcement/article/0,,id=121259,00.html

Answer 2

Paying employees in cash isn't illegal unless the income isn't reported and taxes aren't withheld. Some union contracts actually require that their members be paid in cash -- many construction workers' unions are an excellent example.

Dealing in selling fraudulent replicas isn't illegal under the income tax laws as long as all income is property reported and taxes are paid. In fact, the IRS actually requires you to report income from illegal activities. Don't forget that Al Capone was finally nabbed for tax evasion, not his various criminal enterprises!

Income tax evasion is pretty simple to define: Failure to report income received and pay the required taxes on it. It doesn't matter how it's done or where it's done or what form the payment takes -- it doesn't even need to be in money; barter income must be reported at the fair market value.

Answer 3

I have read about rare arts dealers representing articles as genuine that are fakes from the fertile crescent area. And getting away with it by charging a finders fee and being a "broker" for the "real seller". If you google those words the article should pop up