Question

For most Code purposes, what must the IRS prove in order to show that a taxpayer committed a "willful" act resulting in a tax crime?

Answer 1

Willfulness is the “voluntary, intentional violation of a known legal duty.

IRS (Internal Revenue Service) must prove 3 elements to establish the criminal tax evasion.

1.            the existence of an additional tax due and owing

2.            an attempt by the taxpayer to evade or defeat the tax

3.            willfulness on the part of the taxpayer

The IRS defines willful neglect as being a "failure to exercise the care that a reasonable person would observe under the circumstances to see that the standards were observed, despite knowledge of the standards or rules in question."

IRS criminal matters are usually quite extremely complex in nature.

Following are the factors that may impact the outcome of an IRS criminal case :

a) the number and nature of tax errors,

b)            the total amount of money involved and

c)            whether or not an individual has a history of any previous tax violations

For fraudulent tax evasion, the burden of proof rests on the government. An examiner must establish a taxpayer’s intent to defraud the government.