While it is not usually something people in Tennessee like doing, every year people must file their taxes and give what they owe to the IRS. As many people are aware, there were some major changes made to the tax code recently, which will change how many people approach their taxes. However, one thing remained the same: people will still be required to pay taxes on the income they earned throughout the year.
There are many people who try to minimize the amount of taxes they pay each year. Many of the deductions people took in order to do this will no longer be allowed, but people will still try to find a way. Some individuals will try to do this illegally by under reporting income or doing other things in violation of the tax law. If these people are caught, they could face fairly significant penalties.
A person who intentionally evades paying taxes could be charged with a felony. Upon conviction, he or she could be forced to pay a fine up to $250,000, be sent to prison for up to five years, or both. Also, companies who are required to collect taxes and fail to do so or willfully underreport or under-pay on the taxes collected could be charged with a felony and face the same penalties. People who are required to make estimated tax payments must do so as well. If they do not, they could be charged with a misdemeanor and could be sent to jail for up to a year and/or pay a fine of up to $100,000.
The key to all of these penalties is that the actions taken must be knowing and willful. There are many people who simply make mistakes. In these instances, there usually are defenses available to these people to potentially avoid these harsh penalties.
Everyone in Tennessee who earns an income must file tax returns each year and accurately report their income. These people must also pay the taxes they owe. If they do not they could be charged with felonies and face jail time. Experienced attorneys understand the tax laws and may be a useful resource when accused of wrongdoing under the country’s tax laws.
Source: IRS, “Related Statutes and Penalties – General Fraud” accessed on Feb. 12, 2018