IRS Tax Debt, Advice for Service Industry Workers and Tax Cheating Myths

Under a Magnifying Glass: Work in the Service Industry? Be careful, you're being watched. The IRS has determined that the biggest chunk of people who cheat on their Tax Returns work in the service industry. Especially doctors, hairdressers, lawyers and even Accountants. So be extra careful when you're filling out your Tax Returns this year. Watch out for bad advice and myths.

Myth #1: You can claim Kids or a Spouse you don't have.
This is obviously a bad idea. The IRS double checks suspicious Tax Returns. And if it's determined you are lying, you will owe any money you received plus penalties and interest. You even risk criminal charges and jail time.

Myth #2: If you don't file one year, don't file the next.

Failure to file is a criminal offense. And unless you want to risk jail time, it's a good idea to file your taxes. Alarms won't sound, the IRS will not hunt you down when you suddenly start filing again. In fact, the IRS wants to encourage nonfilers to file. So if you haven't filed, get started!

Criminal Intent: The IRS does not take Tax Cheating lightly. They have a special department for people who try to cheat Uncle Sam out of him money. It's called The Criminal Investigation Division, or CID. It has 4, 500 workers. People who work in this division are called “Special Agents” and they even carry badges and have guns. They are like the IRS's police force. They are specially trained by the IRS and the FBI. Don't think you can get away with a Tax Crime when these guys are around.

Prevention is Key:
Now you know how dangerous the IRS can be. They have special departments trained to hunt you down. So watch out, make sure you don't follow bad advice. You can end up owing tons of fines, or worse, you can end up in prison.

It's Not Too Late:
Don't lie! If the IRS is already investigating you for Tax Fraud, you'll only be fanning the flame if you lie to the IRS. You do have the right to remain silent. This is guaranteed by the 5th amendment. But this is not a permanent solution. Interest due for fraud is 75% added to the tax due! So you can't stay silent and ignore your debt. If you are unsure of how to handle the situation, it's a good idea to find a qualified Tax Care Professional that can help you with your specific case.