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Attempts to Conceal Your Tax Mistakes Compounds Your Tax Problems Increasing the Risk of a Prison Sentence
Nobody wants to file and pay taxes. However, the only thing worse than filing and paying taxes each year may be making a filing mistake that opens one up to an IRS tax audit or a criminal tax prosecution. Many times taxpayers may realize that they made an error on their initial filing. However what the individual does next could determine the consequences he or she may face. If, in a panic, the taxpayer attempts to conceal the error, she may have very well compounded her liability and make the possibility of facing severe tax consequences more likely. However, if the taxpayer discloses the error and corrects it she may be required to pay a relatively small penalty, but that could be the extent of the consequences.
Such was not the case for 46-year-old e-commerce entrepreneur, Gregg Kaminsky, who failed to pay taxes on money held in an undisclosed Swiss account and on income earned from the virtual world known as Second Life.
“I’m not a greedy criminal who set out to break the law”