Though the idea of paying taxes is one that can cause much grumbling among Texas residents, not paying could cause serious issues. If the Internal Revenue Service suspects a person of intentionally avoiding the payment of taxes, it is possible for an investigation to begin and possible criminal charges to result for tax fraud. In such a case, a person could end up labeled a tax cheat.
Typically, the term “tax cheat” refers to someone who intentionally tries to defraud the government by not paying the appropriate amount of taxes. In other words, the person tries to cheat the IRS out of taxes owed. Individuals could come under suspicion of such activity for various reasons, including not reporting earned income on a tax return or trying to hide taxable funds. In some cases, a simple mistake could lead to suspicion, but often, these issues are cleared up easily with more information.
The IRS takes tax fraud seriously, and the agency often relies on tips from other individuals, known as whistleblowers, to report suspected fraud. Of course, they have other measures for detecting possible fraud as well, such as comparing financial information provided by taxpayers to various records the agency has. In the event that the IRS does suspect someone of fraud, an investigation will ensue, and if there is evidence to support the suspicion, criminal charges could be brought against the person.
Being deemed a tax cheat can certainly damage a person’s reputation as well as result in him or her having to go through a lengthy legal process to defend against such allegations. If Texas taxpayers have found themselves accused of tax fraud, they will certainly want to know how to handle the situation as effectively as possible. Fortunately, they could enlist the help of legal professionals experienced in this area of law to gain reliable information and assistance.