When it comes to tax crimes in Rochester, New York, Upstate New York or elsewhere, Tax Evasion is always considered the ultimate of tax crimes.
What is “Tax Evasion”?
At our firm we see a lot of what taxpayers do and don’t do that usually causes them trouble. There is a lot of confusion about what “Tax Evasion” is, and that there are actually two forms of tax evasion:
- Evasion of Collection
- Evasion of Tax Liability
Usually the Evasion of Collection is utilized to target taxpayers. This is frequently the case when the IRS has observed the structuring of cash deposits. Many people commit structuring without even realizing it’s a crime and its now a major focus of the government.
A simple example of Evasion of a Tax Liability is filing a false tax return. Evasion of a Tax Liability is where the taxpayer engages in an act for the purpose of attempting to evade the assessment of a tax. Usually the liability is improperly understated. Regarding Evasion of Collection the tax liability is correct, but the taxpayer takes action to aggravate the tax collection. An example of this is filing a false Collection Information Statements, solely utilizing in cash so that the IRS cannot collect and levy bank accounts and / or “hiding” assets in other people’s entities or names. Undoubtedly, due to the IRS focus on Structuring, Evasion of Collection crime is on the raise.
The Financial Crimes Enforcement Network (FinCEN) which is a bureau of the United States Department of the Treasury, requires financial institutions to file a Currency Transaction Report (CTR). The CTR is filed, usually automatically whenever it receives more than $10,000 in cash or cash equivalents. Structuring is the crime committed when someone “structures” their deposits to avoid having a CTR filed. When taxpayers try to dodge the IRS collection efforts, they often commit this crime, which is what the Department of Justice (DOJ) will use as the act to prove the Evasion of Collection charge.
It is critical that taxpayers and their practitioners understand what Structuring is and that it is not only a crime itself but can be used by the government to strengthen its tax evasion case. Furthermore, by merely playing cat-and-mouse with the IRS Collection Division the taxpayer is committing Tax Evasion.
If you or a client have any questions about tax crimes, including Tax Evasion or Structuring, please feel free to contact me at (585) 210-7405 or jasonzukoski@integratedtaxresolutions.com.
Jason Zukoski
Integrated Tax Resolutions / 585Tax
395 Helendale Rd.
Rochester, NY 14609
Ph. (585) 210-7405
jasonzukoski@integratedtaxresolutions.com
www.integratedtaxresolutions.com / www.585tax.com
Rochester, NY • Buffalo, NY • Syracuse, NY