Taxation Solutions, Inc.

(281) 891-3950

Taxation Solutions, Inc. - Header

Tax Fraud Vs Negligence

The IRS estimates that around 17% of taxpayers are not complying with the tax laws. Most of the “non compliance” comes from underreporting income on tax returns. While the number of taxpayers who try to purposely defraud the government is minuscule, it is important for you to know the difference between a tax evader and a negligent taxpayer.

Tax Fraud

Tax fraud is the deliberate act of underreporting to the IRS your income or over reporting your expenses. Studies show that business owners, self-employed workers such as hair dressers and waiters/waitress are the biggest culprits of this. If you are caught trying to defraud the government you can be subject to penalties, fines and even imprisonment! Fraud is no laughing matter and is a serious crime!


IRS tax law and tax filing is a complex issue where mistakes will happen. It is easy for an individual to make errors on their tax return, but that doesn’t mean that they are trying to deliberately cheat government out of taxes that are owed.  Examples of negligence could be not filing yearly tax returns each year, miscalculations in income or expenses or inaccurate record keeping.

If the IRS is claiming that you owe for back taxes or if you need to file past due tax returns, call us today for a free consultation.