If you count yourself among the many people across Minnesota who make occasional guesses or estimates when filing your taxes, you are not alone. Taxes can prove tremendously complicated, and unless you make your living working as, say, an accountant, you make an occasional error here and there when you file. Even if the errors you make are not intentional, though, you can still face stiff penalties for lying or providing false information when filing your taxes.
At Joseph S. Friedberg Chartered, we help Minnesota residents from all walks of life with various criminal tax issues. We often handle common mistakes that might be avoided by dealing with tax challenges by the book rather than guessing at numbers, paying late or failing to file at all. These are examples of seemingly innocuous errors might carry serious consequences for your future.
Certainly the topic of income tax has been a major one in the news as of late with Congress working hard to get a new tax bill passed before it takes the winter holiday break. Many people in Minnesota are understandably curious to learn more about how the new guidelines may affect them and their ability to deduct some expenses from their taxes or to claim certain tax credits. Before learning about the specific details, however, it is important to be educated about the difference between tax deductions and tax credits.
The current tax system in the United States is set up to allow consumers the ability to deduct some things from their tax bill. This reflects the reality that people in Minnesota and around the nation logically want and need to seek opportunities to reduce their tax burden and keep more of the money they earn for themselves. However, there may be at times a fine line between what is considered a legal way of reducing tax debt and what is considered tax fraud.
With the end of the calendar year fast approaching, many residents in Minnesota may be eyeing ways of maximizing tax deductions in the last few weeks of the year. This is nothing new and is actually a well-accepted practice among consumers and businesses alike around the nation. However, there can be many fine lines between what is considered a legitimate means of reducing one's tax burden and what is a potential illegal violation.
Minnesota residents who are accused of white collar crimes like embezzlement, conspiracy and other offenses may well be nervous about the prospect of spending time in prison. The inability to keep working or maintain other parts of their lives can be seriously hampered which yields consequences that last much longer than a sentence on its own might.
If you are like many Minnesotans, you may find filing and paying your taxes confusing. The process involved in doing so can prove highly complex, and many people make errors unintentionally and out of negligence, rather than malice or an intent to commit fraud. Some tax-related errors are far more common than others, and recognizing what some of these common tax errors are may help you avoid unknowingly committing tax fraud.
Minnesota residents who watch the efforts of the Internal Revenue Service when it comes to tax collections and even prosecutions for alleged tax crimes or non-payment of federal income tax will be interested to learn that the IRS has recently announced the appointment of a new official. The man took over as the Chief of the Criminal Investigation Division earlier this summer. This position itself is not new but this appointment is and reflects the IRS' continued commitment to pursuing what it deems to be violations of the tax code or other compliance issues.
Minnesota residents who encounter problems with alleged tax violations may at times face a bumpy and uncertain future. The Internal Revenue Service may be powerful but there is still the reality that every person accused of a criminal offense deserves a fair defense. The outcome of a particular case may be very different than what may have originally been thought or might have been possible.
Minnesota residents who hear about people being charged with tax crimes should know that these types of cases can involve a great many different situations. It is not always about someone not reporting income on a tax return, for example. Also important to remember is that an accusation or an arrest is never a guarantee that a person is guilty or will be convicted.