What happens when tax evasion is suspected?

Taxes are an important part of supporting the community and government. They provide for a variety of different things that make the United States a great place in which to live. However, some people in Missouri may not file or pay their taxes for a variety of different reasons, sometimes as a result of oversight. Unfortunately, failure to do so could ultimately result in accusations of tax evasion.

The U.S. tax system is based upon the expectation that taxpayers will willingly fulfill their tax obligations. As such, the IRS will undertake certain measures to encourage nonfilers to come forward. These measures include taking voluntary payment into consideration when determining whether criminal prosecution is necessary. Additionally, they will negotiate payment installment plans and a reduction of tax liability.

When making a determination of whether to prosecute a person for tax evasion, the IRS will likely examine the intent of the person. For example, a person who makes a simple mistake or  whose return was lost in the mail will likely not face prosecution. However, those who receive income as a result of illegal actions or those whose actions are considered blatantly fraudulent — such as someone who failed to file returns for several years despite being contacted by the IRS multiple times — may be at a higher risk of facing prosecution.

If the IRS suspects tax evasion, a primary investigation will begin, followed by a subject criminal investigation. Unfortunately, the process may seem daunting for those who are the subject of such action. As a result, many in Missouri seek guidance from an attorney with experience with tax evasion allegations to guide them throughout the process.