Question By: Tax fraud and tax evasion in Illinois are serious crimes. Because there are many types of taxes at the state and federal levels, there are many categories of tax fraud. Some include failure to file a tax return, evasion of payment, filing a false return, and tax evasion of assessment taxes.
Penalties for tax fraud vary greatly because of the many state and federal laws involved. In most cases, the government will assess a monetary penalty, and they may include an interest rate and fee for the time in which taxes were not paid. There are two tiers for failing to file a tax return.
In Illinois, there are several types of tax fraud, including:
-
Underreporting income: This occurs when a taxpayer deliberately fails to report all of their income on their tax returns. This can be done by concealing income, falsifying documents, or failing to report all sources of income.
-
Falsifying deductions: This occurs when a taxpayer claims false deductions or credits in order to reduce their tax liability. This can be done by falsifying records, claiming false business expenses, or claiming false dependents.
-
Sales tax fraud: This occurs when a business fails to collect or report sales tax on items sold to customers. This can be done by underreporting sales, falsifying records, or failing to remit collected sales tax to the state government.
-
Payroll tax fraud: This occurs when an employer fails to withhold taxes from employees’ paychecks or fails to remit the withheld taxes to the state government.
It is important for taxpayers to understand their obligations under Illinois tax laws and to accurately report all income and deductions on their tax returns. If you have any questions about your tax obligations, it is recommended that you consult with a tax professional or the Illinois Department of Revenue.
Visit today https://www.glozmanlaw.com/2023/02/how-serious-are-bank-fraud-and-tax-fraud-charges/ to learn more.
Answer By: