Optimal Work Daily - Career, Productivity and Entrepreneurship 1808: Tax Fraud - Are You Unintentionally Committing it by Vicki Cook and Amy Blacklock of Women Who Money
Sep 12, 2025
Explore the fine line between willful tax fraud and unintentional negligence. Learn how the IRS distinguishes between the two based on intent. Discover serious consequences of fraud, including potential criminal charges, versus penalties for honest mistakes. Common pitfalls that can lead to unintentional fraud are highlighted, emphasizing the importance of careful financial decisions. Engage with practical insights on how to navigate IRS investigations and the value of consulting a tax attorney.
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Intent Determines Fraud
- Tax fraud hinges on intent rather than the mere presence of errors on a return.
- The IRS distinguishes deliberate falsehoods from unintentional mistakes when assessing criminal liability.
Double-Check Returns Before Filing
- Check your return carefully before filing to avoid accuracy-related penalties of about 20% on underpayments.
- Ensure reported figures are accurate to reduce the risk of penalties for mistakes.
Different Burdens For Civil Vs Criminal
- Civil fraud cases require proof by clear and convincing evidence while criminal cases require proof beyond a reasonable doubt.
- Criminal convictions carry far heavier consequences including potential prison time.
