Tax Evasion Facts and Figures

Tax Evasion:

-The illegal nonpayment or underpayment of tax
*Tax evasion is a criminal offense under federal and state statutes

U.S. Tax Evasion Costs

– 2010: $305 billion
– 2009: $304 billion
– 2008: $357 billion
– 2007: $376 billion
– 2006: $376 billion
– 2005: $314 billion
– 2004: $272 billion
– 2003: $257 billion
– 2002: $269 billion
– 2001: $290 billion
* 2001-2010: $3.09 trillion

How you’ll get in Trouble

Unreported income is the most common issues that brings taxpayers under investigation

Omitting specific transactions
* Ex: Sales of a business

Entire sources of income
* Ex: Side business

The Typical Tax Evader

– Gender: Male
– Age: Under 50
– Tax Bracket: Highest
– Type: Complicated return
– Means of Evasion: Overstatement of charitable contributions (particularly church donations)

Under Criminal Investigation

– IRS targets those who…
* Misreport income, credits, and/or deductions on tax returns
* Don’t file a required tax return

– In 2015 1,330 tax payers were indicted out of 150 million
– IRS has caught 35,000 fraudulent e-filed tax returns and 741 paper tax returns as of 2016
– IRS can issue audits up to 3 years after submission

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