Corporate Tax Evasion

Corporate Tax Evasion or tax fraud, is the purposeful illegal attempt of a corporation to evade payment of taxes imposed by the federal government. The IRS identifies and targets small business; s-corporations and sole proprietorships as the largest contributors to the tax gap between what is owed in federal taxes and -- what the federal government receives.

Rather than W-2 wage earners; corporations, small business and sole proprietorship employees contribute to the tax gap because there are few ways for the government to know about skimming fraudulent deductions or non-reporting of income without mounting more significant investigations. Those who are self-employed or run small businesses may not declare income and evade the payment of taxes unless someone turns them in!

However, the IRS has developed several methods of 'proof of income Tax Evasion' in an effort to decrease the tax gap. These investigations can be carried out to determine the correctness of any tax return, make a return where none has been made, determine the Liability for any income tax or collect any income tax. The IRS has the authority to summons the corporate officer to provide particular information for purposes of investigating and ascertaining the correctness of tax returns. The information requested may include books, records, papers, checks (fronts & backs) and any other data which may be relevant to the investigation.

The IRS can only impose penalties and require payment of proper tax due and Remand the evader over to the Justice Department for criminal indictment and prosecution