Countless of people dread the idea of being audited by the IRS and even thought of going to jail if they have made a serious mistake.
Truth is, the fear of IRS audit is among the primary reasons why people are doing their best to file their tax returns annually on a timely manner and as accurate as possible.
Though what’s really happening is, there are only few taxpayers who end up in jail as a result of tax evasion. Believe it or not, there are only 1000 people more or less out of the 150 million who have been indicted by the IRS for legal source tax evasion back in 2015. This is far less compared to the figures accumulated to narcotics or illegal activity.
Don’t Worry. You’re Safe
It is because the IRS is targeting mainly those who are understating what they actually owe. Cases for tax evasion usually start among taxpayers who:
Number 1. Misreported credits, income and/or deductions on tax returns and;
Number 2. Intentionally or unintentionally fail to file tax return.
The IRS is not pursuing most of the tax evasion cases among individuals who cannot pay taxes on time. On the other hand, things are different if you intentionally try to hide your income and assets that have to be used in paying your back taxes.