It may seem that the difference between tax negligence and tax fraud are trivial. However, these are legally two very different types of illicit actions that taxpayers may commit when filling out their tax returns. Accordingly, they have different definitions and carry different penalties under the law.
In Maryland, finding fraudulent state income tax returns is the job of the Comptroller of the Treasury’s office, through that agency’s Bureau of Revenue Estimates’ Questionable Return Detection Team. In years past, the job was overwhelming, with a staff of 20 sifting through around 110,000 potentially fraudulent returns each year.
The federal government expects Rockville businesses to withhold payroll taxes from their employees -- and to hand over that money to the IRS. When authorities believe that a business has failed in either step, they will bring serious federal charges against the owners.
You have probably heard of this scam before: a con artist calls up potential victims, claiming to be an IRS agent and demanding immediate payment of a supposed tax bill. Perhaps you have even received one of these scam calls yourself.