Tax Fraud Case Study Tax Evasion
Added on 2020-04-07
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Surname 1Name:Instructor:Course:Date:Kenneth Dale Stainback Tax Fraud CaseTax fraud or tax evasion is the unlawful avoidance of tax payment by an individual, company or trusts; it mostly involves taxpayers willingly giving wrong information about their real value of property or incomes to the system to reduce their tax accountability. In the United States of America, Federal tax dodging is the criminal act of willingly avoiding the payment of tax obligated by federal law. Tax evasion when discovered by the government is punishable by fine, imprisonment or both. The main source of government revenue is taxation and if majority avoided paying their tax duty, the state’s ability to provide to its citizens basic amenities would be seriously affected (Bagaric, et al 512). Therefore, it is essential for the law and order department to enforce laws that discourage tax evasion. The most common punishment for tax fraud is imprisonment; mainly this is usually to discourage other prospective lawbreakers from engaging in similar act however this is not proof that the ruthless sentence for tax offences increases tax compliance.With regards to a case in which a funeral home owner engaged in a tax fraud and how he faced the consequences, a court document acknowledges that Stainback and two others filed an incorrect corporate tax return for the funeral home they owned, redirecting money from the business in a span of three years (Janicello). In an effort to cover up the tax fraud, the men erased
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