The only reason anyone indulges in tax fraud is because they believe it is profitable. However, fines and imprisonment can be repercussions of tax fraud if caught, and the IRS is cracking down. Former U.S. Rep. Jesse Jackson Jr., accused of tax fraud, pled guilty yesterday of using campaign funds for personal expenses.
The fraud included wire fraud, mail fraud, and using false statements to reduce his tax liability. He admitted to using about $750,000 of campaign funds for personal expenses from 2005 to 2012.
His wife, former Chicago Alderman Sandra Stevens Jackson, also pled guilty of tax offenses after her husband’s confession.
“She saw this as an opportunity to put this behind her, to admit that she’d made some mistakes in judgement regarding the expenditure of campaign contributions, and so she made the decision to plead guilty today to one tax charge,” Jackson’s licensed tax professional, Dan Webb, said after the court appearance. “That’s the only thing she pled guilty to because that’s the charge the government filed against her.”
Once a tax fraud scheme is carried out, a taxpayer can be caught at anytime and lives in constant danger of being discovered. Most people, after they have carried out a tax fraud scheme once or twice without repercussions, begin to take more chances. After years of carrying out fraud, the eventual punishment is severe. Apart from monetary losses and imprisonment, you also suffer damage to your reputation as a taxpaying patriot.
The IRS’ CI (Criminal Investigation) unit investigates tax fraud, including tax avoidance and tax evasion. Along with the CI unit, the FTC (Federal Trade Commission), the police, and other law enforcement agencies also work, in isolation and together, to bust tax fraud and tax scams.
Tax fraud might be easy to carry out and does not involve violence, but it involves damages, including loss of financial, mental, and social stability, as many taxpayers who are victims of tax fraud soon find out.