District of Columbia Tax Fraud and Tax Evasion Laws

Even with all of the tax assistance programs available to the public today, fully understanding the income tax process can make you go cross-eyed. While there is often some wriggle room allowed for those filing their own taxes, District of Columbia tax fraud and tax evasion laws ensure that taxpayers are not purposefully skimming off the top of the money that they owe to the District. This is a quick summary of the tax fraud and tax evasion laws in the District of Columbia.

District of Columbia Tax Fraud and Tax Evasion Laws: Tax Assessment

After learning that a tax return has been fraudulently filed, the District of Columbia allows these taxes to be immediately assessed or a court proceeding to take place. The District of Columbia Office of Tax and Revenue also may assess penalties toward these taxpayers who either fraudulently file or completely evade paying their taxes. The following table outlines the specifics of the District of Columbia's tax fraud and tax evasion laws.

Code Sections

District of Columbia Official Code §47-1812.07: Payment of Tax

District of Columbia Official Code §47-4301: Periods of Limitations

What's Prohibited?

According to District of Columbia tax fraud and evasion laws, a tax may be assessed, or a proceeding in court for the collection of the tax may begin without assessment, at any time in cases where there is a:

  • False or fraudulent return with the intent to evade tax,
  • Willful attempt in any manner to defeat or evade tax imposed,
  • Failure to file a return, or
  • Filing of real property tax exemption application.

Omitting Gross Income on Income/Franchise Taxes

Under District of Columbia tax fraud laws, if the taxpayer omits an amount in gross income in excess of 25%, the omitted tax may be assessed, or a proceeding in court for the collection of the tax may begin without assessment, at any time within 6 years after the return was filed.

Penalties

District of Columbia tax laws state that the Office of Tax and Revenue can automatically charge a penalty for underpayment of estimated tax by any person, financial institution, or business. The Office of Tax and Revenue will charge 10 percent interest, compounded daily, on any underpayment of estimated taxes. Generally, auditors manually add this charge.

The District of Columbia Office of Tax and Revenue provides tips to understanding and calculating your estimated tax so that you can avoid tax fraud and evasion laws. If you have been accused of violating tax fraud and tax evasion laws and require legal advice, you can contact a District of Columbia tax lawyer through FindLaw. Visit FindLaw's sections on tax evasion and other District of Columbia tax laws for more articles and information on this topic.

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