Is it tax fraud for an individual to declare non-taxable revenue as taxable income? (US tax laws)
Hypothetically, A wants to pay B a considerable amount of money.
In order to reduce the paper trail, A pays me the money and I transfer it to B.
To further obscure the paper trail, I declare the payment from A as income for work (non-existent) done by me for A, enter it on my US Income Tax return as taxable income, and pay the resulting tax.
I have submitted a false tax return, but it leads to an increase in tax paid. Is it still a crime?
Edit: No money laundering. A legally possesses the money and has a perfectly legal (and very private) reason to pay it to B.
united-states fraud federal-tax-law
asked 5 hours ago
DJohnMDJohnM
370212
add a comment |
Hypothetically, A wants to pay B a considerable amount of money.
In order to reduce the paper trail, A pays me the money and I transfer it to B.
To further obscure the paper trail, I declare the payment from A as income for work (non-existent) done by me for A, enter it on my US Income Tax return as taxable income, and pay the resulting tax.
I have submitted a false tax return, but it leads to an increase in tax paid. Is it still a crime?
Edit: No money laundering. A legally possesses the money and has a perfectly legal (and very private) reason to pay it to B.
united-states fraud federal-tax-law
asked 5 hours ago
DJohnMDJohnM
370212
Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago
add a comment |
Hypothetically, A wants to pay B a considerable amount of money.
In order to reduce the paper trail, A pays me the money and I transfer it to B.
To further obscure the paper trail, I declare the payment from A as income for work (non-existent) done by me for A, enter it on my US Income Tax return as taxable income, and pay the resulting tax.
I have submitted a false tax return, but it leads to an increase in tax paid. Is it still a crime?
Edit: No money laundering. A legally possesses the money and has a perfectly legal (and very private) reason to pay it to B.
united-states fraud federal-tax-law
asked 5 hours ago
DJohnMDJohnM
370212
Hypothetically, A wants to pay B a considerable amount of money.
In order to reduce the paper trail, A pays me the money and I transfer it to B.
To further obscure the paper trail, I declare the payment from A as income for work (non-existent) done by me for A, enter it on my US Income Tax return as taxable income, and pay the resulting tax.
I have submitted a false tax return, but it leads to an increase in tax paid. Is it still a crime?
Edit: No money laundering. A legally possesses the money and has a perfectly legal (and very private) reason to pay it to B.
united-states fraud federal-tax-law
united-states fraud federal-tax-law
asked 5 hours ago
DJohnMDJohnM
370212
asked 5 hours ago
DJohnMDJohnM
370212
edited 21 mins ago
DJohnM
asked 5 hours ago
DJohnMDJohnM
370212
asked 5 hours ago
DJohnMDJohnM
370212
asked 5 hours ago
DJohnMDJohnM
370212
370212
Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago
add a comment |
Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago
Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago
add a comment |
1 Answer
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The primary crime that you have described is called money laundering.
There are also multiple tax related crimes that could be implicated, not all of which require that taxes due by the person charged by reduced. See, e.g., Conspiracy to Defraud the United States (18 U.S.C. § 371); Attempts To Interfere With Administration of Internal Revenue Laws (I.R.C. § 7212); Fraudulent Returns, Statements or Other Documents (I.R.C. § 7207); Identity Theft (18 U.S.C. § 1028(a)(7)), etc.
answered 5 hours ago
ohwillekeohwilleke
52k259131
add a comment |
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1 Answer
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1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
The primary crime that you have described is called money laundering.
There are also multiple tax related crimes that could be implicated, not all of which require that taxes due by the person charged by reduced. See, e.g., Conspiracy to Defraud the United States (18 U.S.C. § 371); Attempts To Interfere With Administration of Internal Revenue Laws (I.R.C. § 7212); Fraudulent Returns, Statements or Other Documents (I.R.C. § 7207); Identity Theft (18 U.S.C. § 1028(a)(7)), etc.
answered 5 hours ago
ohwillekeohwilleke
52k259131
add a comment |
The primary crime that you have described is called money laundering.
There are also multiple tax related crimes that could be implicated, not all of which require that taxes due by the person charged by reduced. See, e.g., Conspiracy to Defraud the United States (18 U.S.C. § 371); Attempts To Interfere With Administration of Internal Revenue Laws (I.R.C. § 7212); Fraudulent Returns, Statements or Other Documents (I.R.C. § 7207); Identity Theft (18 U.S.C. § 1028(a)(7)), etc.
answered 5 hours ago
ohwillekeohwilleke
52k259131
add a comment |
The primary crime that you have described is called money laundering.
There are also multiple tax related crimes that could be implicated, not all of which require that taxes due by the person charged by reduced. See, e.g., Conspiracy to Defraud the United States (18 U.S.C. § 371); Attempts To Interfere With Administration of Internal Revenue Laws (I.R.C. § 7212); Fraudulent Returns, Statements or Other Documents (I.R.C. § 7207); Identity Theft (18 U.S.C. § 1028(a)(7)), etc.
answered 5 hours ago
ohwillekeohwilleke
52k259131
The primary crime that you have described is called money laundering.
There are also multiple tax related crimes that could be implicated, not all of which require that taxes due by the person charged by reduced. See, e.g., Conspiracy to Defraud the United States (18 U.S.C. § 371); Attempts To Interfere With Administration of Internal Revenue Laws (I.R.C. § 7212); Fraudulent Returns, Statements or Other Documents (I.R.C. § 7207); Identity Theft (18 U.S.C. § 1028(a)(7)), etc.
answered 5 hours ago
ohwillekeohwilleke
52k259131
answered 5 hours ago
ohwillekeohwilleke
52k259131
answered 5 hours ago
ohwillekeohwilleke
52k259131
answered 5 hours ago
ohwillekeohwilleke
52k259131
52k259131
add a comment |
add a comment |
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Money laundering is a different crime than tax fraud, but still a crime.
– SJuan76
5 hours ago
How do you know that your 20% tax bracket was greater than the tax bracket of person B? Either way this is a fraud against the US government. I would assume that they didn't want a paper trail because they have an outstanding debt like child support. Even if it wasn't money laundering it's still fraud.
– Ron Beyer
30 mins ago
What does B's tax bracket have to do with anything? It's my taxes, with or without the fake income, that is of concern...
– DJohnM
7 mins ago