![]() ![]() There are some situations, however, where these fines and charges may be waived.Īccording to PBS.org, the IRS has lightened the punishment placed on people who have committed tax evasion accidently. Convicted tax evaders may be fined a maximum of $100,000 and sentenced to up to five years in prison. According to the IRS, anyone who performs one of these activities in an attempt to deceive the IRS may be charged with a felony. ![]() ![]() All of these acts are considered tax evasion, and the penalties can be severe. For example, people may inflate deductions, hide money in an overseas account, underreport their income or misrepresent their assets in some other way on their tax return. Tax evasion occurs when people or companies use different tactics to avoid paying federal and/or state taxes. However, doing so may be considered tax evasion. Some people may not be aware of the consequences of failing to perform either one of these tasks. but keep their money in foreign accounts should disclose the amounts held in those accounts to the IRS on their annual tax return as well. citizens living abroad are responsible for reporting all income no matter where it was earned, and paying their taxes, regardless of whether they are living in the country. tax return with the Internal Revenue Service. When people live overseas for a period of time, they are still required to file a U.S. What people may not know is that failure to file a return and pay these taxes can result in serious fines, even if people are not currently living in the United States. In some cases, tax filers will receive money back from the federal and/or state or they may have to pay the government. When it comes times to file an annual tax return to the Internal Revenue Service, some people simply have their taxes done by a professional or choose to calculate the numbers on their own. Although this usually comes with strict penalties, the IRS may waive them in some cases. People may inadvertently commit tax evasion. ![]()
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