Last Updated on November 27, 2021 by Mikebush The Rich Lazy Asshole
Are you really here to find out how to lie on your taxes and get away with it? That is possible but you do not expect me to tutor you so well that you get into trouble. I do not want you facing criminal charges, so I will discuss a simpler way to get around the system.
Experts say the present system of tax relies a lot on the W-2 or 1099 for it to be a reportable income. Well, there you go with, maybe, leverage it first to beat the government, and your community, do not forget.
The IRS field agents out there auditing for unreported cash income is reportedly down at 25 percent. So, the IRS is giving the fight mostly to hidden offshore accounts, tax protesters, and tax shelters.
Unfortunately, this is weakening field results, meaning you might never be audited, and so you get away with the taxes easy-peasy.
Besides, in 2020, well no thanks to COVID, the IRS audited just 509,917 as opposed to 771,000 in 2019. It appears you may never be audited after all.
How to Lie on Your Taxes and Get Away with It
So, how do you outsmart society? Certainly, because you are not outsmarting the government alone—they come and go. Meanwhile, expect the government to give tax evasion a fight.
Below are the ways you can lie on your taxes and get away with it:
Understand your credit
If you do not know your tax credits, you are most likely not getting a tax refund instead of overpaying it.
Unfortunately, there are not many tax credits opportunities. Just make do with what is available to you.
Perhaps, it skipped, but a tax credit is a money for money reduction in your tax due when you compare it to a deduction that is money for money in taxable income.
Tax credit combined with overpayment can become a tax refund. You cannot leverage your credit when the credit is refundable, notwithstanding if you owe no taxes. However, your refund can always be nicely padded.
At the federal level, you have refundable, or say partially refundable income tax credits such as AOC (American Opportunity Credit) and EITC (Earned Income Tax Credit (EITC). You can also find opportunities within your state.
Use the comment section so I can assist you find cool refundable tax deals in your state.
Know the charity rules
Congress is now stricter when it comes to charitable deductions and it is becoming a prime mail income auditor.
For instance, you can no longer write donations you make for smaller items in not-so-good conditions. You also need canceled checks and receipts for cash gifts. This means not easily deducting $60 after sending torn Nike to the Salvation Army, Save the Children or United Way Worldwide.
If your donation is $250 or greater, you are required to get a letter from the charity to file a tax return. Basically, after tithing at the church, it can become tax returns if not reported in a letter. Instead, it gets you flagged, and the system thinks you are trying to beat it.
Get a reliable tax preparer
You need an honest tax repairer. For instance, suppose they ask you to wink unreported income or inflate deductions, you need a new tax preparer.
The government is also targeting tax preparers, and if found to be dishonest, their entire clients are audited. And, you do not tell your preparer that you are trying to game the taxing system.
In the case of a field audit, you need a lawyer. If you belong in the unlucky number for a tax audit, let a lawyer do your talking.
The IRS agent could ask about your cash receipts, and when you lie about them, it is a felony for providing false data to a federal character.
Instead of giving a direct answer, you want to give a response like “I will find out”.
An IRS agent can tell when you are lying, no thanks to currency transaction report banks and other institutions have to file.
In essence, just get a lawyer to do your talking instead of a CPA. Your lawyer could always have a walk around even if you tell them lies that are not too loud.
Record all employee expenses
You want to keep information about your employee expenses. The IRS will come after unreimbursed employee business expense deductions, so you must already fix it.
No credit card statements are allowed, so you need real receipts as proof. Meanwhile, as an upper-middle-class, you already pay the alternative minimum tax, so no deduct employee expenses.
Never phone tax authorities
If you have a big refund to claim, it is advisable to try to pay it down instead of frequently calling the IRS to find out about the current status.
Frequent calls make you look too desperate, and the revenue department can start recording your phone conversation. Of course, they will use it to get something against you.
Be careful with the nanny
Perhaps, you would say ‘fortunately but, of course, it is tougher for the IRS to know if you do not pay payroll tax for your domestic employees.
Read also: Craigslist’s Under-the-table Jobs
Many people no longer file for nanny tax, for instance, and so field agents always want to know if you have no domestic employee.
The problem you must really look to solve begins when you fire your domestic worker. If they applied for state unemployment benefits, it can point to your household. This means you are paying not just the taxes owed but twice or thrice the amount due to penalties and interests. This can be three times more than what you actually owe in taxes.
Not many people file domestic employee returns. In some states, many families are cheating and the IRS is aware. In locations like Washington, more people are filing it but the case is unsurprisingly the reverse in other states.
Do not have secret offshore accounts
If necessary, close your secret offshore accounts because it is a felony not to inform the government about it.
Congress, as mentioned earlier, is becoming stricter, encouraging the IRS to take really deep measures to discover your secret offshore accounts.
Clerks at offshore banks can simply copy your data into flash memory and forward it for investigation.
Meanwhile, civil penalties can be confiscatory. If you amend your returns as a taxpayer before the revenue agency, there are chances that you will avoid being prosecuted. A lawyer can make this task simpler.
If you are doing this, or already did, here is how you can get your bank statement for a closed bank account.
Look out for a refund
You can check the mail or your bank for a refund. Suppose you have fraudulently managed to gather a multi-million dollar fraudulent tax refund from the Treasury.
You will be paid the amount like any legal tax refund. Unfortunately, not as cash or gift cards.
The money is issued in the form of a check in the mail or deposited directly into your bank account.
Will I get caught if I lie on my taxes?
Can IRS send you to jail?
You will not really go to jail for not paying taxes. Moreover, the IRS will not file criminal charges against you or send you to jail for not paying your taxes. The IRS only serves to remind you that you are flouting your civil duties and must pay back every tax you owe.
Well, above are the few methods we have explored. You want to make sure not to be cocky about everything. The IRS is really after those living a better life with their field agents.
You have to get even smarter because low-cost techniques are also put in place to strike credit claims and deductions the masses make.