Why You Shouldn't Commit Tax Evasion

Audio version available here (2 min.)

Paying less taxes is something everyone wants to achieve; however, you should not participate in tax evasion to do so. While it can be the easy way out, it’s oftentimes more trouble than it’s worth. If you believe you can get away with it, think again. Here’s what has happened to those who thought they could outsmart the IRS.

On March 15, 2024, Rick Tariq Rahim from Virginia was convicted of tax evasion. He pleaded guilty for failing to pay the IRS $1,844,489 in taxes. From 2018 to 2022, Rahim, who owned several businesses, did not pay taxes withheld from his employees’ paychecks. He was subsequently caught and now awaits his sentencing. Here in the Houston area, Peter Joseph Tignini has been handed down 41 months in prison. While working abroad in the United Arab Emirates from 2013 to 2018, Tignini earned over $4 million in income. During this period, he falsely reported his tax returns. When investigated, Tignini attempted to cover his tracks by framing a previous employer and lying to auditors. As a result, he was convicted of tax evasion and owes $1,169,348 in addition to his prison sentence and eventual supervised release for 3 years. As you can see, swindling the IRS, and even worse, lying to auditors during an investigation, only leads to heavy penalties and jail time.

While you should not commit tax evasion, we understand that you want to pay less taxes. You can do this legally by practicing tax avoidance. As defined by the IRS, tax avoidance is “an action taken to lessen tax liability and maximize after-tax income”. Finding ways to get “certain deductions, credits and adjustments to income” is the heart of practicing tax avoidance. Keeping good documentation will allow you to prove that you qualify for deductions that will help you pay less taxes.

It’s best to start your tax avoidance journey by engaging in professional tax planning with a CPA. At XQ CPA, we specialize in guiding our clients towards their tax avoidance goals. To get started, reach out to us by calling the number below or booking a consultation online today. We’d love to help you.

Phone: 832-295-3353

Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php

Want the latest and greatest tax tips and business news? Stay up to date with our social media!

Our blog: https://www.xqcpahouston.com/blog

Our channel: https://youtube.com/@XQCPA

Facebook: https://www.facebook.com/XQCPA/

Instagram: https://www.instagram.com/tax_xqcpa/

Twitter: https://twitter.com/xqcpa

LinkedIn: https://www.linkedin.com/company/xq-cpa/

TikTok: https://www.tiktok.com/@xq.cpa

Sources:

https://apps.irs.gov/app/understandingTaxes/whys/thm01/les03/media/ws_ans_thm01_les03.pdf