You work hard to make and maintain a life for yourself in Florida, which involves keeping your finances in check. Whenever tax season rolls around, you may find yourself the slightest bit tempted to fudge the paperwork to keep more of the money you worked so hard for. The government does not really need that much money, does it?
Before you give in to temptation, learn what MarketWatch has to say about lying on your taxes. Even the smallest omission can result in a massive fallout.
You risk substantial financial penalties
The first thing you should know is that you risk hefty fines and penalties by intentionally lying on your taxes. Even a small omission or tax underpayment can result in a standard fine of as much as $250,000.
The IRS could audit you
If Uncle Sam feels that anything is amiss on your tax return, the IRS could audit you and your financial records to determine the source of the discrepancy. You have to remember that the IRS gets all copies of your W-2s and 1099s from your employers and anyone you may do contractor work for, so they know how much you make even if you do not list that information on your tax returns. When things do not add up, you set yourself up for an audit, which can result in penalties, fines, and fees if you need legal representation.
You could receive criminal charges
Depending on the severity of your tax evasion and the results of your audit, you could find yourself hit with criminal charges. A charge of tax fraud, which is a felony, could result in as many as five years behind bars, 10 years for felonies involving foreign accounts.
This information is only intended to educate and should not be interpreted as legal advice.