Tuesday, 22nd May 2012

Tax Payers, Tax Preparers And Unreported Income

Posted by admin in Tax

Tax Payers, Tax Preparers And Unreported Income

Recent Senate reports reveal $100 billion dollars a year not being paid in US taxes for assets held offshore by US taxpayers. The following is a summary of penalties and fines for Tax Payers and Tax Preparers re: unreported income.

Tax Payers & Unreported Income: Civil and Criminal Penalties could face imprisonment up to 14 Years Felonies1. IRC §7201:  Tax Evasion(Willful Evasion of Tax)Felony:Up to 5 years in prisonFine: $100,000 (individual)        $500,000 (corporation) 2. Additional FeloniesIRC §7212: Obstruct (Impede) Tax CollectionFelony: Up to 3 years in prison. Fine: $5,00018 U.S.C. 371: Conspiracy to Impede Tax Collection (Separate Charge of Impeding)Felony: Up to 5 years in prison Misdemeanors3. IRC §7203:  Failure to File Tax ReturnMisdemeanor: Up to 1 year in prisonFine: $25,000 (individual)        $100,000 (corporation) Fines (Penalties)1. Civil Tax FraudMaximum Penalty: 75% of Tax DueIRC §6651(f)): Fraudulent Failure to File Tax ReturnIRC §6663(a)): Fraudulent Tax Return Filed 2. Failure to Pay TaxMaximum Penalty: 25% of Tax DueIRC §6651(a)(2): Shown on ReturnIRC §6651(a)(3): Not Shown on Return

Tax Preparers Unreported Income: Criminal Penalties and Fines could face imprisonment up to 18 YearsFelonies1. IRC §7201: Tax Evasion(Willful Evasion of Tax)Felony: Up to 5 years in prisonFine: $100,000 (individual)        $500,000 (corporation) 2. IRC §7206: Fraudulent Tax Return(Preparation)Felony: Up to 3 years in prisonFine:  $100,000 (individual)          $500,000 (corporation) 3. Additional Felonies:IRC §7212: Obstruct (Impede Collection of Tax)Felony: Up to 3 years in prison. Fine: $5,00018 U.S.C. 371 – Conspiracy to Impede Tax Collection (Separate Charge of Impeding) Felony: Up to 5 years in prison Misdemeanors4. IRC §7203: Failure to File Tax Return(Keep Records, Supply Information)Misdemeanor: Up to 1 year in prisonFine:  $25,000 (individual)         $100,000 (corporation) 5. IRC §7210: Failure to Comply with Summons(Testimony, Production of Books & Records)Misdemeanor: Up to 1 year in prisonFine:  $1,000

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