Money Is Caught, Hiding Money

1395 Words6 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,…show more content…
The Innocent Spouse Relief can be requested when a spouse requests relief from tax, interest, and/or penalties if the other spouse has hidden income from her and she did not know about the omission in the business income . In order to qualify for innocent spouse relief, the spouse requesting relief has to meet certain conditions. The conditions are as followed: requesting spouse filed a joint return, there is an understated tax on the return due to erroneous items of the former spouse, can show that when signed return the requesting spouse did not know that the understated tax existed, and it would be unfair to hold liable for the understated tax . The IRS will investigate to make sure an innocent spouse did not know about the hidden income using certain factors . On the IRS website the factors were stated as “Whether the wife received a significant benefit from the understated tax, whether the spouse deserted her, whether the wife or husband have been divorced or separated, and whether the wife received a benefit on the return from the understated tax.” In this paper, concealment of income will be discussed using court cases including: Wilson v. Commissioner of Internal Revenue, New Case: Wilson v. Commissioner of Internal Revenue Karen and Lloyd Wilson have been married for some time. Over the years, Lloyd was working as a self-employed insurance salesman.
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