Many people take all measures possible to avoid run-ins with the Internal Revenue Service. They ensure that accurate tax returns are filed on their behalf each year, allowing them to avoid levies, wage garnishments, and possible indictment. No one wants to have one of the many IRS problems that can potentially ruin their future.
Individuals who commit tax fraud or tax evasion can be subject to indictment and possibly incarceration. Someone who knowingly under-reports income, claims excess withholding deductions, or fails to file a tax return can face these repercussions. The individual may first receive a call from criminal investigator with the Internal Revenue Service. Before answering any questions presented by the investigators, the person should retain an attorney.
Daring individuals attempt to hide from the government by never filing annual tax returns. This action is not only illegal, it will most likely end with the offenders being caught. The government has instituted a voluntary disclosure provision allowing these individuals to make things right. Eligibility criteria and stipulations regularly change, so it is recommended that an offender contact a CPA and in some cases, a tax attorney.
Just because an individual does not knowingly commit a tax law violation does not mean he or she is free from blame. Someone who files jointly with a less than forthcoming spouse may be determined responsible for under-reporting income. This situation can hold true even after the marriage is legally dissolved or the spouse dies. The surviving individual should contact a tax attorney to determine eligibility for the federal innocent spouse relief provision.
The government uses techniques like placing levies on securities, bank accounts, and real estate to collect money owed. It may also require that an offender’s employer garnish the wages of the individual. Another collection method is a lien, which prevents an asset from being transferred or sold until tax debts are satisfied. People who find themselves subject to any of these should immediately seek guidance from a CPA.
Tax evasion, tax fraud, and issues regarding joint returns can cause IRS problems. Garnishments, levies, and liens are different methods the government uses to collect resulting tax debt. Severe cases involve criminal charges and jail time upon conviction. Taxpayers can avoid issues by having their returns filed by a CPA and contacting a tax attorney when required.
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