Can I avoid fraud charges on past tax returns?

btape · #1 12-19-2006, 08:05 PM

I'm sure that I did not pay the proper amount of taxes in my last two returns. I only reported the amount I withdrew to my bank accounts, and not what I withdrew with my neteller atm card. I know I was supposed to pay taxes on everything, but I was 18 at the time and stupidly decided not to. I would assume that leaving it be could constitute fraud if I were ever audited. Now, if I went back and found out the correct amounts and filed ammended returns, could I face non-monetary penalties? I'm not worried about having to pay interest or anything like that, and I just want to have a clean tax record should I get audited in the future.

So I guess my question is, if I take the initiative and correct my tax returns before getting caught, can I avoid any criminal penalties or anything else more severe than fines even though I committed fraud in the past?

Strickly Bidness · #2 12-19-2006, 08:18 PM

yes, you have like 3 years to correct these returns. talk to your state IRS office, they will hook u up.

Addiction · #3 12-19-2006, 10:07 PM

No.

grapabo · #4 12-19-2006, 11:29 PM

Even without fraud charges, the IRS is going to impose failure to file or failure to pay penalties.

The interest rate is determined by the going market rate, and the IRS is not in the business of floating loans at the will of the taxpayer, so the run-up of the surcharges is going to be punitive.

For more, see here:

http://www.irs.gov/taxtopics/tc653.html

permafrost · #5 12-20-2006, 01:00 PM

Don't forget to amend your state income tax returns if you do amend federal.

CaptVimes · #6 12-20-2006, 01:21 PM

[ QUOTE ]
yes, you have like 3 years to correct these returns. talk to your state IRS office, they will hook u up.

[/ QUOTE ]

Talk to an accountant first not the IRS.

Strickly Bidness · #7 12-20-2006, 01:33 PM

[ QUOTE ]
Don't forget to amend your state income tax returns if you do amend federal.

[/ QUOTE ]

I never do this. They'll charge u like 20 bucks in interest if you dont, but its rarely worth it. Just let them send u a bill from the state, no biggie.

btape · #8 12-21-2006, 07:29 PM

Ok, I think I understand the process to amend my tax return, and I plan to do so next year. However, my biggest concern is fraud charges, and I'm still not sure if amending my tax returns even helps prevent this. It seems like the process of amending your return is for when you made a mistake, not for if you know you cheated and now want to make good on it. Even if I pay every cent that I owe, and can provide records to prove the amount is correct, then could I still get in trouble if I get audited and they find that my previous years' tax returns were not mistakes afterall, but instead tax evasion?

grapabo · #9 12-21-2006, 09:27 PM

I don't think there are many people on this board who can guarantee you won't get nailed for criminal charges, and I'm not one of those people. But I think common sense says that you're better off reporting your returns than if you continue not to. If you owe taxes, there are already penalties in place outside of criminal charges that will apply and make sure that nonfilers aren't getting an advantage by waiting to file.

With any other criminal case, a charge of tax evasion or fraud or other criminal penalties will carry with it the evidentiary and constitutional protections. It takes time and money to prosecute criminal cases, and the burden is on the government to prove your intent was to defraud.

The IRS has some specific info on what activity is in the neighborhood of tax fraud:

Link is here

ALawPoker · #10 12-22-2006, 09:29 AM

[ QUOTE ]
With any other criminal case, a charge of tax evasion or fraud or other criminal penalties will carry with it the evidentiary and constitutional protections. It takes time and money to prosecute criminal cases, and the burden is on the government to prove your intent was to defraud.

[/ QUOTE ]

This seems right to me. The government can't say "hey you did this on purpose, dude" and throw you in jail (even if it's fairly transparent). There's due process, and ultimately they're not gonna care, and will be happy imposing a nice meaty charge on you rather than waste their time trying to prove your intent.

At the end of the day you could always just claim you are the most absent minded person ever and you forgot you were making neteller ATM transactions but reporting a different figure. Now you're trying to be a good citizen and pay your debts. I don't really see how they go about proving otherwise.