What Behaviors To Avoid Which Alerts the IRS for Fraud or Tax Crime?
To set the record, it is not a crime to find ways to reduce the income taxes as long as it is done in legal ways. Having said this, legal means does not include evasion of tax return. When you avoid taxes, you do not only hide the facts but also make things unclear to the IRS. On the other hand, committing mistakes is also not also considered as a crime as long as it is not intentional. If, however, the IRS finds out that you are responsible for fraud, then they will definitely give you a find or let you go to jail thus it is very important that once you are subjected under the investigation of the IRS, you need to seek help from a person who is familiar with tax and crimes related to it.
Here are some of the behaviors that will alert the IRS that you are intentionally finding ways to reduce your income tax return.
- Intentionally underreporting of your income
– Taking payments in cash and neglecting to deposit them to avoid tax penalties
– Inflating the expense of your business
– Creating false business expenses for the reason to lower down taxes
– Creating a false Social Security Number
– Keeping multiple ledgers of your financial records
– Claiming spousal exemption even if you are single
– Claiming dependent exemption for people whom you do not support
– Destroying or concealing your account books
– Making false checks to support deductions that are bogus
– Denying the deposits in your bank account as part of your income
– Concealing your finances from the IRS
– Transferring your assts to hide them from IRS
– Reporting personal expenditure as business expenditure
– Claiming a lot of charitable deductions
– Failure to file for returns even if you make enough income
– Making false statements even if you are under oath
– Failure to file the return despite if you have been contacted by the IRS already