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Matthew A. Radefeld and Daniel A. Juengel

White-collar crimes of tax evasion and tax fraud in St Louis, MO

On Behalf of | Jun 17, 2021 | Federal Crimes, White Collar Crimes |

The United States government requires all citizens to file a federal income tax annually. However, if your annual income does not exceed a certain threshold, you might not be obliged to file a return. Non-residents may also file U.S. tax returns depending on their source of income and tax filing status.

A major issue arises when someone is eligible to file taxes and knowingly decides not to. If you violate the tax law or fail to file a tax return correctly, you can be prosecuted for tax fraud. St Louis is governed by Missouri tax fraud and tax evasion laws. Tax offenders in Missouri face criminal and administrative charges depending on the type of fraud or the offender’s intent.

What is the role of the Criminal Tax Investigation Bureau?

The Criminal Tax Investigation Bureau works in cooperation with the Internal Revenue Service. Its primary role is to conduct complicated criminal investigations in sales, income taxes, tax fraud, and withholding. The Bureau also works with other local and federal law enforcement agencies located in Missouri.

What are the prohibited tax evasion activities in Missouri?

Missouri laws forbid the following tax evasion and tax fraud activities:

  • Filing of false tax returns to evade assessment
  • Knowingly neglecting tax assessment duties by tax collectors or county assessors
  • Failure of a taxpayer to give a genuine list of the taxable assets to a tax assessor
  • Collection of more taxes by a tax collector
  • Collection of undue taxes by the tax collector
  • Intentionally failing to pay tax, file a false return, or failing to pay tax from a taxpayer or corporation
  • Claiming false deductions
  • Entering inaccurate amounts into the books

What are the penalties for tax fraud and tax evasion in Missouri?

Typically, tax fraud and tax evasion cases fall under white-collar crimes, and they incur various types of penalties. The following are the different classes of felonies and misdemeanors in Missouri and their respective penalties:

Class A misdemeanor: jail time of one year or less and up to a $1,000 fine for individuals or a $5,000 fine for companies.

Class B misdemeanor: jail for a maximum of 6 months and a maximum of $500 for individual taxpayers or $2,000 for companies.

Class C misdemeanor: jail for a maximum of 15 days and a maximum of $300 fine for individuals or $1,000 fine for companies.

The violating taxpayer may also be required to pay the correctly calculated unpaid taxes and the cost incurred during prosecution, including collection costs of those taxes. Understanding tax evasion and tax fraud can help individuals and companies ensure they have proper management of their finances to avoid violations.