As a company owner, you might be so busy that you make mistakes when filing your tax returns or forget to file them at all. A similar thing can happen if your company is larger and you entrust that job to others. They too could make a mistake or forget to file, and you might know nothing about it. Will this lead to criminal charges?
First, it is crucial to understand that the Internal Revenue Service (IRS) realizes that people make mistakes. Generally, if you realize there is an issue, you should get in contact with the IRS as soon as possible to explain the situation. They may allow you to settle the matter quickly without major penalties.
What if the IRS discovers the issue?
The IRS randomly reviews a certain percentage of tax returns each year, so they may notice any mistakes if your return selected. They might have other information that leads them to investigate you and therefore encounter the oversights.
Clearly, it looks better if you inform the IRS of the issues yourself. Otherwise, it will need to decide if those errors were honest mistakes or an intentional attempt to deceive them. If the IRS believes you were acting dishonestly, they may move to charge you with tax evasion.
It is the intent that is key
If you don’t think the IRS will believe that your mistakes were honest, then consider legal guidance to help you deal with the matter. Remember, the IRS must prove that your actions were intentional for them to be considered tax evasion.