Money Is Caught, Hiding Money

1395 Words Nov 3rd, 2015 6 Pages
Concealment of assets or other sources of income happens every day, however, most go without ever being caught. If taxpayer is caught, hiding assets and income may be considered tax evasion. Asset and income concealment apparently is common in situations where couples do not want one another to know about income received. Concealment of income between spouses may be a lot less noticeable when the parties own a business. The party that is concealing income could do so in many ways, to simply hiding funds in bank accounts, to writing checks out to himself or herself, and etc. Asset and income concealment can happen in a corporation also, but the chances of getting caught are much greater than those who own the business. For the fact being, corporations can issue internal controls that could prevent hiding income. Once the IRS knows of the fraud, they will alert the taxpayer and invoke penalties . For the parties to be considered guilty the IRS must determine that the taxpayer actually owed more than what was included on the tax return and that the taxpayer understated income deliberately. If the IRS were to find out a spouse hid income and it was not included in the joint income tax return that would mean part of the tax was under paid and it could be considered fraud. When filing a joint tax return, both parties are generally equally and independently responsible for any tax, interest, and/or penalties that arise from the understatement of the taxes. However, there may be a…

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