According to a popular quotation, “nothing is certain but death and taxes.” This quotation showcases the fact that paying taxes is unavoidable, and purposely not paying your taxes would lead to tax evasion cases being filed by the state. Tax evasion is defined by the United States Constitution as the purposeful illegal attempt of not paying your taxes, and the conviction may require the payment of fines and a certain period of imprisonment. In the United States, small businesses contribute the largest tax gaps. They are able to cheat on their taxes because the Federal government would only have a limited means of identifying if they are paying their taxes right.
Unreported income in the United States was recorded at $214.6 billion in the year 2016, with the highest records being at $2 trillion in the year 2008 alone. Tax gaps, on the other hand, were reported to be around $450 billion to $500 billion from the period starting in 2001. There are also reports that companies that have a shared economy would more likely evade paying taxes due to the complicated rules and regulations surrounding their business structures. Others avoid paying taxes by declaring that they have donated large amounts of money to charities, like the church. Other companies are also becoming more creative when it comes to evading taxes. Some are establishing their operations in countries which are considered as tax havens, but the United States government has become stricter when it comes to taxing these companies, and they will do everything to receive what these companies owe.
Small business owners who have earned a profit are encouraged by the government to pay their taxes regularly. They could face tax evasion cases if they failed to file their taxes, and the government has the right to impose strict convictions to those who would fail to do it. To remind most Americans about their taxes, the government is sending regular information through all communication means about the date of the next filing of taxes. Others are putting the date of filing their taxes into the calendar, to avoid forgetting it.
The fees and interest that are attributed to the penalties of not paying your taxes have the possibility to increase every time you avoid paying your taxes. You should start working with a tax attorney to help you with your issues. A tax attorney will know how to help you to get back on track where your taxes are concerned.
The amount of taxes paid depends on the amount generated by an individual, and those who managed to gain the largest profit would be required to pay a larger rate compared to others who only made little. There are instances where an individual forgets to file for their taxes, and it is up to the judge who will be handling the case to decide whether the situation can be considered as tax evasion. Aside from being called inside the court, there are other things that could happen if someone forgets to pay for their taxes. The failure to file penalty is a payment that will be imposed aside once the judge concluded that you have willfully avoided paying your taxes. This amounts to five percent of the taxes which are unpaid, for every month that you have paid the taxes late. For those who have filed their taxes 60 days after the deadline, they would need to pay the total amount of the taxes that they owe or $135, whichever is less. This would serve as their fines for not paying their taxes.
Other are just filing their income and taxes, but do not actually pay them. If they are caught, they are subjected to pay a failure to pay penalty, which amounts to 0.5 to 25 percent of the total amount of taxes for every month that they missed it. These penalties could also pile up, putting you in big trouble.
Most of the time, these lawyers are willing to help their clients in resolving any issues surrounding tax evasion cases. They are the ones who would be speaking with the judges and ask for a lower penalty for the offender. It is also possible for the offender to get acquitted from the case if the lawyer is great enough to point out the flaws on the cases filed against their client. The demand for lawyers specializing in tax evasion cases is high, especially in the corporate world where businesses are being demanded by the government to pay huge taxes which sometimes feel unfair.