How is tax fraud committed?

Tax fraud is a type of white collar crime in which someone deliberately attempts to evade taxes by misrepresenting his or her income, assets, or expenses. Tax fraud is committed by individuals, corporations, or even entire countries. Tax fraud can be committed in a variety of ways. Employers may intentionally underreport employee wages in order to reduce their payroll taxes. Individuals may also hide income or assets by disguising them as business losses, thereby avoiding income taxes. Other examples include failing to report income from investments or capital gains, collecting income from unreported sources, and falsely claiming deductions or credits to which they are not entitled. In California, tax fraud is a felony offense, punishable by up to 3 years in prison and/or a fine of up to $20,000. If the fraud involves more than $25,000, the crime may be elevated to a felony and a sentence of up to 5 years in prison could be imposed. Additionally, a conviction of tax fraud can carry additional consequences such as the revocation of professional licenses, government benefits, and voting rights. Since tax fraud can be complex, individuals or businesses caught up in a tax fraud case should seek the advice of an experienced criminal attorney. An experienced attorney can provide legal advice and represent their client in court if necessary.

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How is tax fraud committed?

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