20. Watch out for Tax Evaders

Warning 20
Tax rates are high and the more one has to pay, the more tempting it is to try and beat the system. You need to watch out. The IRS is not taking it lying down. The frequent flow of anonymous tips, random samples etc. are some ways tax inspectors use to catch tax evaders.

The IRS, under law, has unlimited access to information held by other organisations, such as banks, building societies, lawyer’s clubs, local bodies, social welfare, companies etc. And there is a lot of help because now computers are widely used. You need to get it right and you need to watch out.

The excuse; “I won it at the races” has as much weight, according to the IRS as, “it fell off the back of a lorry”.