Selected Tax Info...
"Tax Fraud Alerts"
treas.gov
===================================================
selected highlights.
>>>[4.2] 6.1.2 (05-14-1999)
Common Penalties
....
This list includes the applicable IRC section, penalty amount and description, penalty
reference numbers, and computation methods. These penalties include the following:
Aiding and abetting the understatement of tax liability;
Estimated tax understatement;
Failure to file;
Failure to pay (on returns secured by Examination);
Fraud;
Frivolous returns;
Negligence;
Penalties for paid tax return preparers;
Promoting abusive tax shelters;
Substantial understatement; and
Valuation overstatement.
...........
[4.2] 6.2.2 (05-14-1999)
FRAUD
Fraud, as distinguished from negligence, is always intentional. One of the elements
of fraud is an intent to evade tax. Some of the indications of fraud are as follows:
False explanations regarding understated or omitted income;
Large discrepancies between actual and reported deductions of income;
Concealment of income sources;
Numerous errors, all in the taxpayer's favor;
Fictitious records or other deceptions;
Large omissions of personal service income, specific items of income, gambling
winnings, or illegal income;
False deductions, exemptions, or credits;
Failure to keep or furnish records;
Incomplete information given to the return preparer regarding a fraudulent scheme;
Large and frequent cash dealings that may or may not be common to the taxpayer's
business; and
Verbal misrepresentations of the facts and circumstances. <<< |
