In 2007, the IRS estimated that Americans owed approximately $345 billion more than they paid. This equals 14% of federal revenues for the fiscal year of 2007. The difference between the amount of taxes actually paid and the amount legally owed is called the tax gap. The two most common acts of tax fraud that contribute to the tax gap are tax avoidance and tax evasion.

Tax avoidance is when you use the tax system to your advantage, by legal means, to reduce the amount of tax that is payable. Examples of tax avoidance include: manipulation of the country of residence, creation of tax exempt legal entities and reliance on legal vagueness. One way to lower taxes is by changing your legal residence to a tax haven, such as Monaco, or by becoming a perpetual traveler. However, in the United States, citizens and permanent residents are subject to U.S. federal income tax on their worldwide income even if they reside temporarily or permanently outside the United States. Nevertheless, there is one way in which US citizens can manipulate their country of residence to their tax liability advantage. U.S. citizens may be able to exclude some salaried income earned overseas when calculating U.S. federal income tax liability, up to a maximum of $87,000.

One can also avoid personal taxation by creating a separate legal entity to which one’s property is donated. This is usually a company, trust or foundation. However, these entities are bound by certain rules which have to be maintained in order to eliminate or lessen tax liability. Finally, some taxpayers may seek to commit tax fraud by relying on the definition of vague legal terms in the Internal Revenue Code, which can lead to a decrease in tax liability. For example, “business expenses” and “personal expenses” are highly controversial tax terms, as they are only vaguely defined in the Internal Revenue Code and can be interpreted in different ways in attempts to decrease or eliminate tax liability.

Contrary to tax avoidance, tax evasion is the general term for methods used by individuals, firms, trusts, and other entities to evade taxes by illegal means. This is usually accomplished by taxpayers deliberately misrepresenting or hiding the true state of their affairs to the tax authorities in order to reduce their tax liability. This includes actions such as declaring less income, profits or gains than what was actually earned or by overstating deductions. Another aspect of tax avoidance is the failure to report unlawful gains as income when filing annual tax returns.

Have you evaded or avoided the payment of tax? Do you want to stay out of jail?  Contact us before the IRS contacts you!

Tax fraud is a serious crime, punishable by both civil and criminal penalties. If you are accused of tax fraud, the tax attorneys at Bucci Law Offices can delineate the fine line between appropriate tax reporting and tax fraud. Allow our tax attorneys to be your tax advocate and fight for your rights!

At Bucci Law Offices, our tax attorneys can help fight for your freedom as well as help you analyze and assess suitable options to resolving to tax problems including keeping you out of jail.  Call Bucci Law Offices today at 954-764-4440 or 877-764-4440 so we can be your tax advocate and fight for your rights!

How Can Bucci Law Offices Help?

Dealing with the IRS alone can be very intimidating, often times, resulting in nothing more than increased interest and penalties being assessed against you.  We can eliminate this stress for you.  You can stop answering harassing phone calls and receiving letters from the IRS.  Instead, you can have us, your trusted partner, deal with the IRS on your behalf and help you get the results you need.  The tax attorneys at Bucci Law Offices have extensive experience with the IRS and can navigate through their rules and regulations, while advising you of your best possible options for resolving your IRS problems.

Remember, IRS problems do not go away by themselves and usually require immediate attention.  You need to know your rights and understand your options.  At Bucci Law Offices, our tax attorneys can help you analyze and assess the options most suitable to resolving your tax problems. You need someone in your corner to protect your rights and interests – we can do just that.  Bucci Law Offices can be your tax advocate and fight for your rights!

If you would like to develop a strategy for filing your tax returns and explore establishing an alternative payment methods contact Bucci Law Offices immediately! Even if you cannot pay all of your back taxes, you can still stop the IRS’s enforced collection actions and try to settle your tax liabilities by negotiating a reasonable monthly payment plan or an offer in compromise settlement that pays a fraction of what is owed. 

Contact Bucci Law Offices today to get the help you need and deserve.  Each second you delay is costing you money!  How long can you afford to do nothing? Call Bucci Law Offices now at 954-764-4440 or 877-764-4440 to learn more about how we can help you with your tax resolution!