It is common to be worried about making mistakes on your taxes. If you do them yourself, even if you are trying to do everything correctly, you could make a crucial error or overlook a key detail.
Some people worry that if they make a mistake, the IRS will say they have committed a crime. They fear they’ll be accused of tax fraud and suffer ramifications like heavy financial fines or even jail time.
Is this something that you should be worried about? Is making a mistake on your taxes actually a criminal offense?
The role of intent
You should try to do your taxes accurately, but it is important to remember that while a willful act could be considered a crime, a negligent error would likely not be. Intent plays a major role.
For example, you could be accused of tax fraud if you intentionally leave out sources of income so that you have to pay less in taxes. You know that you should report them, but you purposely do not add them into the paperwork and only report a fraction of your earnings. Because you did so on purpose, it would likely be considered a form of fraud.
On the other hand, taxes are complicated. If you simply overlook some information or make a mistake when you fill out the paperwork, meaning that you end up paying too little in taxes, that is just a typical error. The IRS will still want you to pay the back taxes if it catches the mistake, but you shouldn’t face criminal charges for it.
Addressing tax issues
Tax law can be complicated, and people are often nervous about dealing with the IRS and other government entities. If you find yourself facing an allegation of tax fraud, it is important to understand exactly what legal options you have. Experienced legal guidance can help.