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Judge: No fraud, but woman still sentenced for tax violation

No one likes paying taxes; we all want to minimize the amount of our hard-earned money that we hand over to the Internal Revenue Service every year. But the responsibility to pay taxes is something that is all but unavoidable.

There are legitimate ways to minimize tax payments, but people can get into serious trouble if they pursue tax avoidance measures that are unlawful. When we read about people being convicted of crimes related to unpaid taxes, the cases often involve some level of fraud. This can include knowingly misrepresenting income or failing to file a tax return altogether. However, not all tax crimes involve fraud.

For example, one woman was recently convicted of not paying her taxes. She had correctly submitted her tax return and accurately determined that she owed $131,349 in taxes between 2007 and 2009. Her mistake was not in the completion of her return; her mistake was that she simply failed to pay.

It all seemed relatively normal. The woman completed her tax returns and had a payment plan set up to pay the money she owed to the IRS. At that point, prosecutors said, she chose not to comply with the payment plan and instead spent her money on paying bills and maintaining her normal standard of living.

While the judge noted that the woman never committed any fraud, he also noted that her decision to not pay the money she owed was unlawful. And even though the woman has repaid the debt and says she never had any intention to commit a crime, she was still sentenced to six months in prison, which will be followed by six months of house arrest.

This case should be a reminder of how seriously all crimes involving tax evasion are taken by the government and law enforcement agencies. Even if a mistake or bad choice seems harmless or minor, prosecutors and government agents can be very aggressive in the pursuit to charge and convict someone on tax crimes. People in this situation should know that they do not have to deal with this situation on their own; they have the right to speak with an attorney to defend themselves and pursue a reduction or dismissal of charges.

Source: The Morning Call, “Palmer real estate agent gets prison for tax evasion,” Peter Hall, Nov. 3, 2014