Running a business is difficult. There are a lot of things to remember, such as; payroll, ordering supplies, paying utilities and most importantly, paying your taxes. As a Massachusetts consumer, when you purchase an item in a store or order food in a restaurant, the money collected by the business for taxes is to be paid on a regular basis, often quarterly, to the state.
The IRS and federal government are concerned about the "tax gap," defined as the difference between what a particular taxpayer pays the IRS each year and what he or she should pay. Some estimates calculate the tax gap to be as much as $300 billion dollars annually. The debt crisis has shown the need to close loopholes in the tax code and elsewhere as a means of realizing revenue. To address this, recent laws now require filers in Massachusetts and across the country to report foreign financial assets which exceed $50,000.
Let's face facts, not very many people jump up and down when it's time to pay their taxes. Every year, thousands of people pay in to the IRS, to settle any outstanding balance they may owe. However, sometimes taxpayers make mistakes on returns or neglect to file the correct documentation. Recently, false tax returns resulted in charges of tax evasion for a former Revere, Massachusetts, accountant.
IRS tax crimes in Massachusetts can substantially alter a person's life, and facing charges of lying to the agency can be intimidating. Possible penalties for conviction include incarceration in a federal penitentiary, criminal fines, and supervision after release from prison. To top it all off, any money that was due to the IRS in the first place is still due, with interest
It's very rare to meet a person who would welcome an audit from the Internal Revenue Service (IRS). In fact, the majority of people fear the idea of an audit so much, that they will do their very best to avoid such circumstances. Unfortunately, the IRS notifies a large number of people about impending tax audits every year. Recently, a Massachusetts financial columnist shared his own experience.