Encino, CA (PressExposure) July 17, 2009 -- Tax evasion is not just a problem for the wealthy. Small businesses and sole proprietors have been identified as the largest contributors to the national tax gap. According to tax expert Michael Rozbruch, without significant investigations, there is no way for the government to control skimming or non-reported income by individuals who are self-employed or run small businesses.
The IRS reports that tax evasion is a widespread problem costing the government an estimated $350 billion in unpaid taxes and creating a tax gap that grows by 10% each year. However, with federal initiatives aimed at narrowing the tax gap, the IRS is cracking down on tax evaders both big and small.
âThere is a big difference between tax evasion and tax avoidance,â said Rozbruch, founder and CEO of Tax Resolution Services, Co., a company that provides affordable solutions to people seeking income tax relief. âWhile it is perfectly legal to work within existing law to avoid paying more than what is required by the IRS, cheating the government on taxes by evading tax laws is criminal and can carry up to a 5-year prison sentence and/or IRS penalties up to $100,000.â
And you donât have to be a tax lawyer to know the red flags that will cause the IRS to be suspicious of tax evasion, Robzruch adds. Even in the current enforcement climate, taxpayers can learn how to avoid IRS tax audits [http://www.taxresolution.com/irs-tax-audits-help.asp] and save money by taking advantage of legal tax deductions to reduce their IRS bill.
âItâs important for taxpayers to be informed so they can avoid becoming targets of aggressive IRS collection efforts like debilitating bank levies that can financially cripple them for life,â Rozbruch said. âAdditionally, anyone who owes back taxes [http://www.taxresolution.com/tax-help-services.asp] or is being audited by the IRS will need to know that there are options for negotiating a tax resolution, and that working with a tax resolution specialist or tax lawyer [http://www.taxresolution.com/about-us.asp] can greatly increase their chances of successfully resolving their IRS tax problems.â
Tax Resolution Services is dedicated to providing affordable solutions to businesses and individuals who find themselves in trouble with the IRS. Their team of expert tax attorneys, enrolled agents and CPAs has a success rate of 90% - second to none in the industry - and an Offer in Compromise Settlement Rate of $0.13 on the dollar. For more information or to receive a FREE tax relief consultation, visit http://www.taxresolution.com or call 866-IRS-PROBLEMS.