Free Download
If you’re having tax problems

So You Cheated On Your Tax Returns

cheating on taxes

Good News! Cheating On Your Tax Returns Is Very Common

So you finally cheated on your tax returns and you are now confused? Well, the good news is, you are not the only one. In fact, cheating on tax returns is very common. There are millions of people who get away with it while a million others face the full wrath of the law. It may not necessarily be the full wrath but they end up paying in one way or the other.

It also depends on the kind of cheating you are referring to. Most people get away with a little tweaking here and there in areas that cannot be easily recognized. Hundreds of millions of tax returns are filed every year and for you to be subjected to a tax audit, you must have made one hell of an adjustment to your figures.

Reasons Why You May Have Cheated

Granted, tax frauds and evasions happen every now and then. It has become a common occurrence. Different people do it for different reasons. Some do it because they want to while others do it because they are forced by circumstances. Whichever the case, the most common reasons include:

Financial Troubles

Falling into bad financial situations forces people into tax evasion and fraud. It is one of the biggest causes of all types of crime. When you are bankrupt or get laid off from work yet you have a family to feed and a mortgage to pay, there is literally nothing you won’t do. Deep down in your bones you know it’s wrong but you have no choice.

Politics

Just like religion, politics is one of the biggest belief systems that drive people’s motives and way of life. There is always an endless debate of how the taxes on certain commodities or resources are too high and the government is not doing anything about it. Such beliefs may fuel an individual or a certain group of people to boycott accounting for all their tax returns as a means to fight the system.

Greed

While some people’s reasons can be justified, some just do it because of greed. When all you think about is your money and how everybody wants to take it away from you, not even the government will get in your way. You will do your best to ignore all the calls by the IRS to do the right thing and only come to grips with reality the moment they break down your door.

You are Ignorant or Misinformed

Did you cheat on your taxes without actually knowing you are cheating? There is a lot of that going around. You have to admit, tax laws are pretty complex. Not everyone understands them. That is why we have tax attorneys. You may not have taken the time to learn how to file your tax returns the proper way. From your end, you did what you know and did not commit any offense. Your intentions were good. However, the IRS doesn’t know that. To them, you are giving them the wrong information.

What Makes It Cheating

This begs the crucial question of what constitutes cheating. What is it that the IRS looks at and gets angry with you? Here are the easiest ways to be considered a tax offender:

False Information

Every detail you enter on your tax returns forms should be truthful. The moment the IRS sense any dishonesty, they will be at your door in no time to perform an audit. If you pass the audit, you are safe. If not, there will be consequences.

Lying During an Audit

When the auditor comes knocking, you better have all your answers straight. IRS agents are highly skilled professionals. They are like walking lie-detectors. The easiest way for them to tell whether you are lying or not is to ask a question they already know the answer to. Woe unto you if you answer otherwise. In any given institution, lying to the authorities puts you in grave danger. With the IRS, it is worse.

Withholding Some Income on Tax Returns

In this day and age, some people rely on up to 5 sources of income in order to take care of the bills and live comfortably. It is therefore sad to work that hard then let the IRS take a piece of each pie. However, you have no choice. When filing your returns, you must include all your income and the sources. If you fail to report some of it, they will know and the consequences might cost you way more.

Missing Sales on Sales and Use Tax Returns

As an entrepreneur, your business is your main and maybe your only source of livelihood. If you want to keep it alive, don’t mess with the government. Make sure all your sales are clearly submitted on the Sales and Use Tax Returns. Failure to do so and you might end up losing it for a while or forever depending on how long you have been playing hide and seek with the figures.

How to Avoid Cheating or Get Away With It

Anyway, since you have already cheated and the chances of you getting caught are increasing every minute, you need a way out. There may be many but only one will give you the best chance of survival.

Get a Very Good Lawyer

When it boils down to the worst case scenario and the letters won’t stop flooding your mail, a really good tax attorney is your best chance at redemption. Tax lawyers are very smart and know every loophole there is to know. They will advise you what to do and if you are good at following instructions, you will be back to your normal routines in no time. They can also teach you the areas to look out for and how to file your returns the proper way.

Learn and Be a Tax Guru

But if you really want to turn into a tax Jedi Master and beat the system, take an interest in CPA and learn all there is to know about taxation. Turn it into a hobby and hopefully, you will make some money from it in the future. There are millions of people who will be willing to pay heavily for your services.

Whether you cheated willingly or unwillingly, getting caught is the worst thing that can happen to you. Make sure you file your returns appropriately the next time or be an expert and cheat like a pro.

Venar Ayar, Esq.

Venar Ayar, Esq.

Attorney-at-Law, Master of Laws in Taxation
Principal and founder, Ayar Law

Venar is an award-winning tax attorney ranked as a Top Lawyer in the field of Tax Law. Mr. Ayar has a Master of Laws in Taxation – the highest degree available in tax, held by only a small number of the country’s attorneys.