Taxes, Taxes, Taxes. There is a big difference between tax evasion and tax avoidance. One of them you can go to jail for.
During tax time, it is very tempting to not like the information I give you. For some they want a larger refund and yet for others they don’t want to pay in. I have no problem and no matter what the talking heads say, its totally legal to use the existing tax code to reduce your tax liability. However, its totally illegal to lie. You may face a stiff penalty or even worse, go to jail.
Let’s face it, you can put whatever numbers you want on your tax return. No one is checking it before you send it in.
If you get away with it, don’t consider yourself a genius. Just consider yourself extremely lucky that you didn’t get audited. However, when you do, you better be ready to explain and pay up.
Getting caught carries heavy penalties and fees. There are late fees and interest charges sometimes on top of other fees and interest that get rather costly.
Besides potentially owing money, you can face criminal charges.
Word to the wise. It is healthier and cheaper not to lie and use real strategies that actually do save you in taxes.