if someone hasn't filed taxes in several years and is getting paid in cash can this be considered tax evasion? if so, how much time can a person serve for this? no records of money paid, no w2's all cash all unreported. sometimes large amounts is that illegal?
2007-05-27 15:48:03 · 11 answers · asked by MIMKA 1 in Business & Finance ➔ Taxes ➔ United States
i appreciate the responses so far however i would like to add that i'm not the one evading, it's my soon to be ex- i filed my taxes all the time i worked, i paid every penny of my share believe me. he however seems to think he's above all that. saying if there's no w2's theres no proof. which i can see, however in requesting my spousal support i'm told he has to show his tax returns to determine amount, is this also true? what do you do in this case? am i screwed out of my support due to his actions? either way it seems i lose after 30 yrs of my life dedicated to him i get left with nothing while he's spending my half on his new girlfriend and her two kids. i know she's just using him for a meal ticket and i know what he's using her for.. will a judge determine support based on what my ex tells him he makes which undoubtedly will not be true. I know what his earnings are, do i get a chance to tell the judge what i know?
2007-05-28 05:55:56 · update #1
Tax evasion is not paying income tax owed on earnings, and yes you can serve time for it, but usually they give you a chance to pay off whaterver you owe, if you have the money available to you. With no W-2's or other records, it may be hard to prove how much you were paid, unless you have any kind of bank account or something showing deposits that the IRS might question where you got the money from, especially if it any large amounts. However, I don't know if there is an amount that you can make and you won't be taxed for it, but if there is and your "earnings" are below that mark, then you are not required to file a return, and you just wouldn't get any money back as a return either.
2007-05-27 16:05:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The American war of independence was fought over taxation, but 200 years later everyone gets taxed above and beyond the services provided by the state. There are some who complain that taxation itself is illegal, because income tax was originally introduced as a temporary emergency measure ("War tax") but they usually lose their case.
What you need to do is make a case for yourself that you were not evading tax, but avoiding it.
Tax avoidance is completely legal, and it involves taking steps to minimize payment by deferring income from one year to another and by taking as much deductions as possible. You would have to prove that you were taking steps to minimize your taxable contributions, instead of trying to evade payment.
I think each charge carries a maximum sentence of 5 years and a $250,000 fine. Multiple counts can add to the sentence and fines.
2007-05-27 16:14:42 · answer #2 · answered by Inkskipp 4 · 0⤊ 0⤋
The situation you describe fits the definition of tax evasion - deliberately avoiding paying tax. Yes, definitely illegal. You could be prosecuted, but it's more likely that you'd have to pay the back taxes plus interest and penalties, which could be substantial.
2007-05-28 05:06:15 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Yes, tax evasion is illegal. Also, it is relatively easy to catch because most people that get paid cash deposit the money into their bank account.
Enjoy the pen. Don't drop the soap around anyone. I think that your new name will be Gladys.
2007-05-28 00:55:05 · answer #4 · answered by Steve 6 · 0⤊ 0⤋
Wilful failure to pay income tax on money earned is a felony under federal law and is subject to a prison sentence of approximately 4 years on each count.
2007-05-27 15:57:36 · answer #5 · answered by pacman 1 · 0⤊ 0⤋
yes tax evasion is illegal
it is the willful misconduct in order toavoid paying taxes and the IRS loves to makes examples of those who really fly it in their face, sentences of 10 to 15 years are not uncommon for those who dodge tax on a big scale
2007-05-27 15:56:38 · answer #6 · answered by Anonymous · 1⤊ 0⤋
LMAO...of course it's illegal. You just answered your own question about tax evasion.
If you're caught you will most likely be prosecuted. The amount you owe determines how much time you'll get if convicted.
2007-05-27 15:52:27 · answer #7 · answered by Anonymous · 1⤊ 0⤋
It means you are purposefully hiding income or misleading in the type of income so that you dont have to pay as muchtax... And yes you can go to jail for it. That is what Al Capone went to jail for.
2007-05-27 15:54:45 · answer #8 · answered by becca457 2 · 0⤊ 0⤋
Yes he deserves everything he gets. He isn't above the law because he's a celebrity.
2016-05-19 05:03:09 · answer #9 · answered by arlena 3 · 0⤊ 0⤋
Can anyone say Al Capone?
2007-05-27 15:57:03 · answer #10 · answered by Mr. Mojo Risin' 3 · 0⤊ 0⤋