Tax evasion is a crime that involves the non-payment or over payment of taxes. Failing to report your income or putting knowingly false numbers in order to avoid larger tax payments is morally and criminally wrong. If you have tax debt and you are unable to pay it, that would not fall under this category.
Tax Evasion Law
Tax Evasion In South Carolina
This can be classified as a state and/or federal crime. It depends on whether you avoided paying taxes to the Internal Revenue Service or the South Carolina Department of Revenue.
If you are charged with this crime, there are a number of things that may occur, including, but not limited to:
• Seizure of your bank accounts
• Garnishing your wages
• Seizure of all assets
• Closure of any businesses
In addition to that, a conviction can lead to possible jail time and whopping penalties. The exact punishment will depend on several factors, including the amount of money that was involved, the number of times a person has committed this same crime, the discretion of the judge that handles the case.
In cases that involve this crime, it is possible for there to be a jury trial or a case heard before a judge. Generally, defendants are allowed to waive the right to be heard by a jury of their peers.
Tax Evasion In Virginia
In Virginia, there are very stiff penalties given to those who avoid filing tax returns in an attempt to avoid paying. It is possible for these cases to be civil or criminal. Which one a person is charged with depends on the amount that was evaded, the discretion of the judge/jury involved and whether this was a first offense.
Typically when this is handled civilly, the penalty is 100% of the correct tax, meaning that someone who owed $1500 and avoided paying it will now be required to come up with $3000 to repay it.
If it is decided that this will be treated as a criminal offense, the offending party may receive up to 1 year in jail and/or fines of up to $2500.
Keep in mind that using false information to avoid paying taxes if not considered the same crime as tax evasion. This is actually known as tax fraud. Being dishonest about your income, using someone else’s name and claiming excess deductions that you are not entitled to are all considered fraud.
While this may seem like a small crime, it can stay on your criminal record and have an effect on you in many different ways. There are employers who will not hire someone who has been convicted of a white-collar crime. There are also landlords and loan officers that are not too keen about doing business with those who are willing to avoid the law in order to get away from the responsibility of paying taxes.
None of this applies to calculation errors made when filing taxes. This strictly refers to those who purposely add false information or avoid filing altogether in an attempt to avoid paying.