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May 17, 2021


Common tactics the IRS looks for in tax evasion cases

It is rare to come across someone in Texas or elsewhere who feels perfectly at ease with paying taxes. While it may seem like a necessary evil, few people are excited to complete their tax returns, file them with the IRS and pay any outstanding balance that they have. As a result, some people may try to lessen their tax obligations in various ways, but if those ways are not legitimate, they could face an investigation and possible criminal charges for tax evasion.

While the IRS may not pick up on a fib here and there and will not punish mistakes as long as they are rectified, no one should think that evading their taxes is the best solution to not wanting to pay them. The IRS can become suspicious that evasion is occurring for many reasons, and in some cases, an audit could come about seemingly randomly. However, if a person has not told the full truth on their tax returns, that random audit could lead to a more serious predicament.

Some common tactics that the IRS looks for to determine whether someone has attempted to evade taxes include:

  • Falsified information regarding income
  • Not fully reporting the amount of income earned
  • Marking up expenses and deductions to a higher amount
  • Not reporting income made from gig work or side income
  • Purposefully underpaying taxes
  • Hiding information about an offshore account that should be reported to the IRS

Facing an audit can be stressful in and of itself, but when the IRS suspects a person of tax evasion, the situation goes from an inconvenience to a possible criminal issue. At the first sign of an audit, Texas taxpayers may want to start preparing for a worst-case scenario just in case. If individuals are accused of criminal activity, they may want to keep in mind that they have the right to defend against any charges brought against them.

Tax Fraud