When is it tax evasion?


J

John

Take a hypothetical-
A Martha Stewart type person gives someone $1M. She falsely
reports it as a charitable contribution and takes a
deduction. There is a paper trail that clearly documents
that she knew it was not a deductible expense, as did her
accountant, who prepared and signed the return.

Would is likely to happen? Would she have to repay it with
a fine of some sort, or would it be treated as a criminal
matter? Would anything be done to her accountant? Assuming
the guy she gave the money to believed it to be a gift and
knew nothing about the improper handling, would he simply
keep the money, or would he also be in trouble?

At what point does an exaggeration become evasion? Is
evasion the same as fraud?

============================================================
Moderator: Send me $1,000,000 and I will pay the best and
the brightest to make certain it is a deductible
expense to the contributor.
============================================================
 
Ad

Advertisements

P

Phil Marti

John said:
At what point does an exaggeration become evasion?
When the government thinks it can prove that it has.
Is evasion the same as fraud?
No. Evasion is a crime. There is civil fraud as well as criminal.

As for poor beset Martha, yeah, if she pulled a stunt like
that they'd probably prosecute. See Leona Helmsley.

Phil Marti
Topeka, KS
 
P

Paul A Thomas

============================================================
Moderator: Send me $1,000,000 and I will pay the best and
the brightest to make certain it is a deductible
expense to the contributor.
============================================================
Do I smell a 501(c)3 application being signed?
 
Ad

Advertisements

J

John

At what point does an exaggeration become evasion?
When the government thinks it can prove that it has.
No. Evasion is a crime. There is civil fraud as well as criminal.
How likely is jail time; for $1m and crystal clear evasion?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top