Are you on the run after failing to pay government taxes? Have they served you with notices of payment several times, and you have failed to honor your obligations? Remember that tax evasion is a serious crime, and after several unsuccessful attempts to get you to commit and pay, and you don’t, the IRs may institute some legal procedures, and in some instances, they may ask for your arrest.
What happens before you are declared a tax fugitive
It’s your responsibility to deduct the right amount of money and remit them as tax to the relevant authorities. However, because of ignorance, greed, or any other reason, some people abuse this power and fail to pay taxes. They may also falsify their tax return documents to indicate a less amount than what they owe the state. Others may resort to filing fake documents or even resorting to bribery. All these are against the law and the penalties can be as high as 300% of the undisclosed income or may make the person serve a jail term.
Methods that people use to evade tax
Moreover, smuggling has become one of the methods that tax evaders use to ensure that they don’t pay tax. Goods that were intended to be exported to a neighboring country get diverted for the local market, and this means that the tax amounts that were intended to be received by the IRS are pocketed by individuals.
2. Filing false tax returns
In some instances, filing false tax returns have been used as a technique of tax evasion. Individuals provide information that they know is false to the IRS, and this makes them pay a small fraction of what they should be paying.
3. Maintaining false financial statement
Some businesses may opt to maintain false financial statements that don’t reflect the true financial position of the company for that year. So if these wrong financial statements are being submitted to the taxman, there is a possibility that a lesser amount of tax will be remitted.
4. Using forged documents to claim tax exemptions
There are instances where the government, through the IRS provides certain tax exemptions, and people use fake documentation to claim certain privileges and exemptions which they couldn’t qualify for in normal instances. This provides a way that the government loses income from dishonest taxpayers.
What You Should Do When Declared a Tax Fugitive
When you are declared a tax fugitive, you should know that you have fewer options. The best option is to get the help of reputable and experienced tax attorneys. These legal experts mostly know that those who find themselves in tax investigations by the IRS are hardworking people, who are good in most cases.
In most cases, these fugitives are people who work hard to make their money and have never been at loggerheads with law enforcers in the past. Anytime you are facing this problem, you will want to ensure that the problem is resolved quickly. This is why you have to get the help of an experienced attorney. You will want to work with a tax attorney who can deliver a no guilty verdict and save you from the investigations that are going on against you.