The Biggest Tax Crimes To Avoid
Tax Evasion
Tax evasion is a criminal offense that takes place when an individual knowingly avoids tax payments to the Internal Revenue Service. Evading taxes is a serious offense because the funds obtained through the tax levy are used to fund public services and expenditures necessary for the betterment of society. Tax evasion typically involves a deliberate action that conceals or misrepresents a tax return to lower or avoid paying monies to the Federal Government of the United States.
Withholding Tax
Withholding tax is a fundamental action government requirement. Withholding tax, in essence, is a loan taken by the government through the obtainment of income or wages of the employed population. During each pay period, an employee has a portion of their salary withheld by the government. The government uses this money to fund public services and current expenditures. When tax day arrives, if the amount withheld exceeds the taxes owed, the taxpayer will receive a refund by the government to offset or in some percentage, make up for the amount withheld during the taxable year.
Related Topics
- A Quick Summary to Income Taxes
- Difference Between Customs And Excise Taxes
- Value Added Tax or VAT Overview
- Sales Tax Overview
- What are the 2008 Tax Brackets?
- Preparing And Filing Your Tax Returns
- A Short Overview on Tax Refunds
- W-2 Form
- Mississippi State Tax
- Internal Audit Overview