Page 136 - Cityview_May_June_2014

COMMUnITY RESOURCE GUIDE

by norman D. mcKellar

Tax Crimes and Why Employers

Should Be Concerned

Misusing funds withheld from an employee’s paycheck is a serious

crime—and one that the IRS will not hesitate to prosecute.

I
n 2013, the Internal Revenue Ser- the Tennessee Department of Revenue tax prosecutions will be against “regu-
lar” people who are neither famous nor
vice launched more than 5,300 crimi- also investigates Tennessee residents and
nal tax investigations of individuals companies who may have violated Ten- actively flaunting their disagreement
with American tax laws.
and companies suspected of breaking nessee’s criminal tax statutes. An increas-
one or more federal criminal tax
ing number of these investigations are for a federal criminal case, the pros-
ecution must prove three things:
statutes. While the majority of the IRS is targeting small business owners.
focused on collecting money, the Crimi- Many people often associate tax
Tax Liability or Tax Deficiency: The
nal Investigation Division (CID) of the evaders with persons who are tax
IRS spends its time and resources inves- protesters or famous celebrities. The actual existence of a due and outstand-
reality, though, is that the majority of
ing liability must exist in order for the
tigating suspected tax evaders. locally,
IRS to prove that a taxpayer attempted

134 cityviewmag.com may june 2014