Sade asked "Is it a crime?" When it comes to purposefully evading taxes or obstructing IRS processes - the answer is yes.
Tax Stories is an ongoing series of blog posts that give real world examples of what not to do when it comes to income and payroll tax. Tax planning and tax evasion are two totally different things. Failing to file and/or pay taxes that you owe can land you in prison.
The goal of providing these real-life examples of what not to do is to help the small business owner from unknowingly putting their freedom at risk by following the wrong advice.
The owner of a company in Kansas City, MO., who allegedly withheld payroll taxes from their employees and did not turn the withholdings over to the IRS, was indicted on a charge of willfully failing to pay over employment taxes owed to the IRS and faces up to five years in prison if found guilty.
A CEO of a corporation in California pleaded guilty to willfully failing to pay employment tax withholdings. This case shows that an individual responsible for turning over withholding taxes can be charged even when the company is a corporation.
Cryptocurrency transactions like Bitcoin are not off the radar when it comes to the IRS. A Texas man faces three years in prison after being indicted with filing false tax returns that underreported his sale of bitcoin.
Don't get booked for having two sets of books. Having two sets of books is what they got Al Capone for. A woman from Alaska kept two sets of books for her business (one real set and one fake set of books she used for her tax return) and ended up getting indicted with tax evasion and filing false tax returns.
There are legal means to minimize tax burden, but actions like the one's above can destroy your business and take away your freedom.
