Tax Fraud Or Tax Avoidance?

September 22, 2008 by Mitchell A. Port

The Difference Between Legal Tax Avoidance and Illegal Tax Evasion

“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands: Taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”

The IRS has a very interesting and detailed description of the types of tax problems people often either intentionally or negligently get involved with. You can read the entire article here but you can see the topics that are discussed below.

Nonfiler Enforcement

Money Laundering

Corporate Fraud

General Tax Fraud

Employment Tax Enforcement

Abusive Tax Schemes

Abusive Return Preparer

Tax Scams - How to Recognize and Avoid Them

All About Criminal Investigation (CI)

Program and Emphasis Areas for Criminal Investigation

Report Suspected Tax Fraud Activity

IRS Wants You to Know About Schemes, Scams and Cons

Civil tax problems? Speak with Mitchell A. Port at (310) 559-5259.