Tax Evasion
What is tax evasion, and how does our government control it?
That's a really big question to answer, so let's break it apart
and answer it in two different paragraphs. Tax evasion is the
intentional avoidance of tax due by a taxpayer, corporation, or
other legal entity. There is a vast difference between the
opportunity to minimize your tax liability and the direct
avoidance of any responsibility. The tax laws and regulations of
the Internal Revenue Service are there for the benefit of the
taxpayer. If there is a way to reduce or minimize the amount of
tax due, legally, by all means citizens are encouraged to take
the break. There are all sorts of ways to commit tax evasion,
and many famous cases have been tried, such as Al Capone and
Willy Nelson. When, as a taxpayer, you seek whatever legal means
possible to avoid tax liability, you are guilty of no crime. It
is your given right to seek a means to minimize your liability,
in order to keep more of your money. However, when companies,
individuals, or any other legal entities attempt to avoid their
legal responsibility, we as a country suffer. The government
operates on tax dollars. Tax dollars that everyone who has been
deemed liable must provide, and if not provided, penalizes
everyone.
Tax evasion has been a part of society for as long as there have
been societies. Even during Roman rule, there were tax
collectors, and individuals who evaded their payment of taxes.
This country was founded on the precept that England charged an
unfair tax on tea (and other various assorted sundry) to the
point that the colonists were unfairly taxed, without a voice in
the government. The Internal Revenue Service is charged with
overseeing the regulation and prosecution of any person or
entity that avoids payment of taxes due, and can assess
penalties for those who succeed.
What tools does the Internal Revenue Service (IRS) use to
control tax evasion? There are actually several means by which
the IRS can control tax evasion, once they discover the crime
has been committed. How do they detect tax evasion? The IRS has
some 2800 special agents that are trained to gather information
that is used to detect tax evasion; they have unlimited access
to tax returns, the power to issue summons regarding needed
financial information, and the right to seize or freeze monies
in the attempt to collect the necessary financial information.
Once the tax evasion has been detected, the Internal Revenue
Service can levy tax liens, seize assets, freeze money in
checking and savings accounts, and garnish wages. Any and all
properties held by the individual taxpayer can be seized, and
sold at auction if no attempt is made to repay the liability.
Everyone that is determined to be involved in an evasion of tax
liability has the opportunity to be heard, to meet with the
Internal Revenue Service, and receive a trial to determine if
the accused party is guilty. It is generally in the individual's
best interest to settle with the Internal Revenue Service if
there is any possible doubt as to their innocence. That's not to
say that the Internal Revenue Service has always played fairly,
or that they are free from mistakes. This is not so. There have
been many instances of improper intelligence access, and errors
on the part of the Internal Revenue. But, in the majority of
cases, the tax evasion accusation was legitimate, and the
individual charged was guilty. Many individual taxpayers rely on
accountants and business managers to handle their financial
affairs; in fact, many are not even aware of the status of their
finances. It is however, ultimately, the individual taxpayer's
responsibility to be held accountable for the information
provided to the Internal Revenue Service. So, if you're going to
be the one in front of the Internal Revenue, you should do
yourself a favor and examine your return, understand what you're
reading, and check the return for accuracy.