Check out this reference guide to learn about tax evasion and what it is explained by David Stewart.

1. David Stewart is an experienced business professional from Bowling Green,
Kentucky who has a long history of paying taxes for both business and
personal ventures. One of the most common concerns he comes across
from young entrepreneurs is tax evasion. Check out this reference guide to
learn more!

2. Taxes are a levied amount
of money, typically
segmented into certain
percentages, which are
paid to the federal & state
government to raise
revenue for various
programs, necessities and
services. Taxes are
required by law to be paid
and are based on the
annual earnings of
corporations, individuals,
legal entities and trusts.

3. Tax avoidance is different
than tax evasion because it
is a legal act for one to use
their tax regime to their
own advantage to decrease
the total tax that is payable
my mediums that are
within the law.

4. According to David
Stewart, tax evasion is
when a taxpayer, whether
it's an individual or
corporation, evades the
payment of a tax. This
action is illegal and
punishable in a court of
law with some
consequences resulting in
hefty fines and
imprisonment.

5. Tax evasion can sometimes
unintentionally occur but it
doesn’t make the offense
less punishable. It can
happen when tips, cash
gifts, barter income, side
jobs and other revenue
isn't reported as annual
income to the federal
government.

6. When taxes are evaded, the
United States loses a
significant amount of tax
revenue that could help
fund various governmental
processes. It's estimated
that 18 to 19% of total
reportable income is not
properly reported to the
IRS. Just from the years
2001 to 2010, an
estimated $3.44 trillion in
revenue was lost.

7. When it comes to receiving
income, no matter the
source - tips, gifts, side
jobs – it should always be
reported to the Internal
Revenue Service to avoid
legal consequences.
Consult with a tax preparer
or consultant every year to
review your annual income
and for proper tax filing.