What you need to know to avoid accidentally committing tax fraud
As a Florida taxpayer, you should know that tax fraud is a serious offense with severe consequences. Tax fraud is any intentional act committed to avoid paying taxes owed. You need to be aware of various forms of tax fraud to avoid committing it inadvertently.
Hiding income and assets can lead to severe consequences
Underreporting income or hiding assets is one of the most common types of federal crimes. Hiding income or assets to reduce your tax burden can have severe consequences, including hefty fines and criminal charges. Failing to report foreign income and assets is also a form of tax fraud that can lead to harsh penalties.
Falsely claiming deductions or credits can trigger an audit
Claiming false deductions or credits is another common type of tax fraud. For example, some taxpayers might inflate their expenses to reduce their tax liability. However, this can trigger an audit, and if the IRS determines that you falsely claimed deductions or credits, you could face tax fraud charges.
Failing to file your taxes can result in serious penalties
Failing to file your tax returns is another form of tax fraud. Even if you can’t pay the taxes owed, filing your returns is essential to avoid penalties and interest charges. Additionally, suppose you fail to file your tax returns for several years. In that case, you could face criminal charges and possible jail time.
Avoid accidentally committing tax fraud in Florida
Tax fraud can result in severe consequences, including criminal charges and penalties. To avoid accidentally committing tax fraud, it’s important to stay compliant with tax laws. Keep accurate records of all income and expenses, report all income on your tax return, and avoid claiming false deductions.