Paying income taxes is a necessity for anyone earning a living in the United States. Most people do their best to minimize how much they need to pay in taxes. Certain tactics, like making charitable contributions right before the end of the year, can diminish...
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Tax Evasion
When is skirting taxes legal?
On Behalf of Demetrius J. Karos, Ltd. | Feb 22, 2023 | Tax Evasion
During a presidential debate against then-opponent Hillary Clinton, former president Donald Trump famously observed that not paying his full tax liability “makes me smart.” There are certainly times when not paying one’s full tax liability is a savvy approach to...
What you need to know about eggshell audits
On Behalf of Demetrius J. Karos, Ltd. | Dec 27, 2022 | IRS, Tax Evasion
If your tax returns have sufficient indications of fraud, the IRS will conduct a civil examination to uncover the truth, commonly known as an eggshell audit. As the name suggests, you must take great care to avoid facing criminal consequences. For instance, you may...
Tax evasion vs tax avoidance: Understand the differences
On Behalf of Demetrius J. Karos, Ltd. | Nov 28, 2022 | Tax Evasion
Tax evasion and avoidance sound almost similar, but they are like day and night. While one is perfectly legal and widespread, the other is unlawful and could land you in trouble with the IRS. Understanding the differences between the two will ensure you stay on the...
Tax compliance: Do you own a foreign bank account?
On Behalf of Demetrius J. Karos, Ltd. | Jul 1, 2022 | Tax Evasion
If you travel frequently or do business abroad, it may be convenient to have a bank account in a foreign country. However, you should comply with IRS tax requirements when reporting on such accounts, or it could land you in trouble. The IRS definition of a foreign...
Does failing to pay enough tax equal tax evasion?
On Behalf of Demetrius J. Karos, Ltd. | Apr 22, 2022 | Tax Evasion
Tax evasion is a serious crime to be accused of, but you should know that most people won’t be unless they have willfully attempted to avoid paying tax. Tax evasion happens only when someone or a business takes steps to illegally avoid paying the tax that they owe....
How does the IRS learn about people’s offshore bank accounts?
On Behalf of Demetrius J. Karos, Ltd. | Feb 28, 2022 | Tax Evasion
Not that long ago, international bank accounts were the perfect safe haven for those who didn't want to disclose all of their personal assets to the Internal Revenue Service (IRS). However, international banking has become much more transparent than it once was. Even...
It is easier to accidentally commit tax evasion than you thought
| Oct 19, 2021 | Tax Evasion
The crime of tax evasion comes with some stiff penalties upon conviction. Some people may intend to engage in tax evasion to pay as little in taxes as possible. However, others in Naperville, Illinois, might not realize tax evasion is occurring. If you fail to learn...
Could divorce lead to allegations of tax fraud?
| Oct 5, 2021 | Tax Evasion
Divorce will change many aspects of your life, including your financial situation. Some of the decisions you make in your divorce will even impact how much you pay in taxes each year. You and your ex will have to create a comprehensive parenting plan when you divorce...
Those who don’t disclose offshore resources can face tax charges
On Behalf of Demetrius J. Karos, Ltd. | Jun 23, 2021 | Tax Evasion
For years, it was the first piece of advice that a financial planner would give anyone with more than a million dollars and assets: It was common knowledge that they should move their resources to an offshore bank account where the IRS wouldn't be able to locate those...