All taxpayers know that tax evasion and tax fraud are felonies subject to harsh financial penalties, and possible jail time. What most of you may not be aware of is that owning certain types of software can also earn you an orange jumpsuit (along with a big dent in your wallet courtesy of Uncle Sam). Such is the case with “Zapper” or “Skimmer” software.
These point-of-sale (POS) software programs are ones that enable businesses that deal mostly in cash (such as restaurants) to under-report their taxable sales, and conceal their actual income from the government’s prying eyes in order to lower their tax liability. Commonly referred to as “zapper” programs, these revenue suppression software (RSS) programs are used to delete some or all of a restaurant’s cash transactions and then reconcile the books of a business.
In 2012, Governor Rick Snyder came down hard on anyone who used, procured, or purveyed this type of tax-cheating software used to cook their books, so to speak. The Governor made it a felony, carrying a minimum of a one-year jail sentence and severe financial penalties, to knowingly sell, purchase, install, transfer, or possess such software. This law took effect on Wednesday, August 29, 2012 and is still in effect today. Despite downsizing of the IRS, the Feds continue to prosecute businesses and individuals utilizing Zapper or Skimmer software on tax evasion and tax fraud charges, too.
Tax Evasion and Tax Fraud are serious charges, with stiff penalties, and require an experienced legal defense. If you’re facing tax evasion or tax fraud charges, you need to consult a qualified tax attorney immediately!
Free consultations with experienced tax attorneys are available at Ayar Law – call 844-AYAR-LAW or simply click here.