MAIN Home Legal Guide Tax Evasion

As sure as the sun rises in the east, almost everybody dislikes paying taxes.

People and companies who resort to tax evasion do it for a variety of reasons. Some people believe that taxes are too high; others refuse to pay taxes on the grounds that they do not support their government; or that government taxes should not exist at all.

Of course, simple greed is likely the most popular reason that people and companies engage in tax evasion.

Tax evasion, when done on a grand scale, usually makes for breathtaking reading and scandalous headlines. But the most typical occurrence of tax evasion is when people attempt some sort of unlawful tax avoidance scheme (like charitable contributions or home office deductions) to reduce the amount of taxes they pay.

It can often be a fine line between legally and illegally avoiding taxes, but if the government suspects tax evasion they have a powerful tool in their arsenal to combat it: the dreaded tax audit. That is, a detailed examination of their tax filing. Those who are found guilty of some form of tax evasion can face fines or even imprisonment, depending on how serious the transgression is.

Sometimes, corrupt government officials will simply overlook "shady" accounting practices in return for a bribe from corporations or from smaller businesses looking to increase their profits. In the high stakes world of big business, sometimes it can be difficult to catch corporate tax evaders, since tax lawyers and accountants can be very good at hiding taxable income in offshore accounts or other masking techniques.

The severity of punishment for tax evasion varies by country, but in the United States it is a criminal act, and if caught, tax evaders will likely face criminal investigations and proceedings.

Tax evasion is no small problem, and it has been estimated that for the year of 2007 the United States government was given roughly $350 billion less than it was owed by American taxpayers.

also see in Taxes -> IRS Tax Forms | How to File an IRS Tax Extension

More about tax evasion around the Web:

Tax Fraud Alerts - IRS guide to tax schemes and abuses including money laundering, corporate tax fraud, frivolous tax arguments by nonfilers, employment tax enforcement, how to choose an ethical tax preparer and related topics.

Tax avoidance and tax evasion - From Wikipedia with information on US and UK enforcement laws and regulations with related topics including civil and criminal penalties, tax shelters, customs duty avoidance, and tax protests and resistance.

Encyclopedia of Everyday Law - Tax Evasion - Clear overview of what constitutes tax fraud or evasion, with a discussion on the sweeping powers of the IRS Criminal Investigation Division and how tax evasion is prosecuted, plus suggested reading and related resources.

Famous Tax Scandals - Photos and profiles of corporate execs, entertainers and crime bosses accused or convicted on tax evasion or tax fraud charges.

The information provided on these pages is intended as reference
only and does not constitute professional legal advice.