Most Massachusetts residents would agree that they would not want to pay more than is owed on any financial obligation. For this reason, people look for as many ways as possible to avoid paying too much in taxes. Tax shelters are one way to make that happen, but when taken too far, it could turn into tax crimes.
Millions of Americans, including most Boston residents, diligently file their tax returns every year whether they will have to pay or will receive a refund. Then there are taxpayers who fail to timely file their returns and do not pay their taxes. For this reason, the IRS may begin doing something it warns people it never does -- show up at people's doors.
Technology has done so much to simplify life, but it also complicates it in many ways. The personal information of Massachusetts residents is out there for clever hackers to steal. When that information is stolen in order to defraud the IRS through tax-related identity theft, the only way individuals may know about it is when their income tax returns are rejected.
Technological advances have made it a challenge for taxing authorities to pursue those they believe are hiding money in order to avoid paying taxes -- until recently, that is. The IRS has worked diligently to find ways to track people who own cryptocurrency in order to make sure they pay taxes on it. For this reason, some cryptocurrency owners, including some here in Massachusetts, could find themselves facing allegations of tax crimes.
Like other people across the country, when Massachusetts residents do not know how to do something, they often turn to someone who does. For instance, fixing an electrical problem, treating an illness and even preparing their tax returns often require some help. People rely on those with the knowledge and experience in certain areas to handle matters on their behalf. When it comes to preparing taxes, the person someone relies on could potentially end up committing tax crimes. What happens to the taxpayers?
Boston taxpayers are required to report all of their income, which includes any virtual currency owned. The problem is that it is easy to forget about it and that could draw the attention of the IRS. In fact, the federal taxing authority recently announced that it has begun contacting certain owners of this type of currency via mail.
Most Massachusetts taxpayers fill out their yearly tax forms, and they make sure they include every dollar of income in order to avoid any adverse repercussions for not doing so. Perhaps it's because they know, or at least suspect, that when it comes to collection taxes, the IRS has many tools at its disposal. One of those tools is the Information Returns Processing System.
Owning a business is a dream of many Massachusetts residents, but doing so comes with certain financial responsibilities. Most people fulfill these obligations, which include paying personal and business taxes. Every so often, the IRS alleges that certain business owners commit tax crimes by falsifying returns and failing to pay amounts the agency believes are due.
It is tax time again. Numerous Massachusetts residents may anticipate refunds while others expect to pay. In either case, filings need to be made, and many people turn to others for help in maximizing refunds and minimizing payments. The problem is innocent people could end up paying for taxes filed incorrectly because they unknowingly became the victims of scammers.
The old adage “just because you are charged with a crime does not mean you are guilty” is more than just a cliché used by criminal defense attorneys to procure business. Many times there is a real life application.