How is tax fraud committed?

Tax fraud is the intentional act of failing to pay taxes or of claiming a false refund by means of lying on tax forms. It is a type of white collar crime that can be committed in South Dakota in a variety of ways. One of the most common forms of tax fraud is filing a false or incomplete tax return. It involves failure to report all income or claiming credits or deductions for which one is not eligible. Attempting to evade taxes by transferring money or assets to someone else to avoid reporting it as taxable income is also fraudulent. A related form of fraud involves claiming false or altered tax documents. This entails a taxpayer submitting false receipts, altered invoices, or other documents that may be used to reduce the taxable amount owed. Tax fraud can also occur due to filing false tax refund claims. This involves submitting a tax return that erroneously claims a larger refund than the taxpayer is entitled to. It also encompasses the use of another person’s information to file a false return in order to obtain a refund in someone else’s name. Finally, tax fraud can take the form of failure to file or pay tax returns. It entails not filing a tax return at all, or filing one where no tax is reported even though the taxpayer owes money. This type of fraud can have significant repercussions, including costly fines and even criminal charges.

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How is tax fraud committed?

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