Chapter 2: Working With the Tax Law

01.Core Concepts

• 75% of underpayment of tax • $5,000 for frivolous or incomplete tax return • May also lead to criminal prosecution • Willful failure to file/pay = misdemeanor  Penalty up to $25,000 and 1 year in jail • Willful attempt to evade = felony  Penalty up to $100,000 and 5 years in jail • Willfully makes false return = felony  Penalty up to $100,000 and 3 years in jail