Taxes are not something that anybody necessarily likes to talk about, but they are something that everybody has to deal with. Whether you are an employee, a business owner, or an independent contractor, taxes are going to be a part of the decisions you have to make throughout the year. If a person purposely avoids paying taxes, they could face hefty fines and prison time. This can include penalties from the federal government as well as the state government. Here, we want to discuss some of the reasons that a person could end up in serious trouble when it comes to tax evasion.
Failing to report income
A person can face charges of tax evasion if they leave out certain transactions that add to their income. For example, many people earn money from both a regular job as well as from various other side jobs. The reality is that all income must be reported so long as a person makes more than $600 from a single source.
As the economy in the United States shifts to remote work, more and more people have discovered that they are able to earn money through various “side hustles.” However, these same people have been accustomed to never having to report any party other than their main employment as part of their income. A person who picks up a side hustle on freelancing sites such as Upwork or Fiverr will still have to report any income that rises above $600.
Additionally, independent contractors and other self-employed individuals may be required to pay quarterly estimated taxes to the IRS. Failing to pay these taxes can result in a person facing significant penalties.
Purposely avoiding taxes
Any person who purposely hides financial information or makes false statements about their taxes to the IRS or state authorities could face criminal charges. For example, if a person is being audited and the IRS asks about their income, and that person purposely gives false information, they could very well be charged with tax evasion. Additionally, if a person claims deductions that they are not entitled to, they could end up in serious trouble with the IRS.
Call our Las Vegas white collar crimes attorneys for help today
If you or somebody you love is facing charges of federal or state tax evasion, you need to speak to Las Vegas white collar crimes attorneys as soon as possible. At Okabe & Haushalter, our qualified and experienced attorneys are ready to conduct an investigation into your case today. Our team has extensive experience handling tax evasion cases for clients, and we know what it takes to fight back against the IRS and the California Department of Tax and Fee Administration.
The IRS and state authorities generally only pursue tax evasion cases against egregious wrongdoers, and not against those who make an effort to pay their taxes accurately and on time. This means that if you are under investigation or have been arrested for tax evasion, you can be sure that the IRS is taking the case seriously. When you need a Las Vegas tax evasion defense attorney, you can contact us today by clicking here or calling 415-448-7992 for a free consultation.
