Is tax evasion illegal?

[closeupready]

What is the difference between tax evasion and tax avoidance?

And finally, what are the penalties for tax evasion?

Thanks.

[JaneyVee]

1. Tax evasion is illegal, usually penalized by wages garnished or jail.

Unfortunately, what Mitt Romney engages in is tax avoidance and it is legal to an extent and is done by exploiting loopholes designed solely for the rich. BUT, it is extremely unethical, especially for a candidate running for President. Especially during a time of war. Especially when we have crumbling infrastructure and educational needs. Especially when wages are crushed and even Veterans are suffering. Especially when he pays less tax rate than the middle class.

Btw, he MAY have engaged in illegal tax avoidance, hence the hidden tax returns.

[closeupready]

2. Thanks - kind of what I thought.

[JaneyVee]

3. Believe it or not, they would rather garnish wages (audit) and recoup the money instead of jail

But they don't have the resources to go after everyone who evades. You have to be proven to have willfully disregarded the tax code.

[daleanime]

4. How do you get 100 million dollars into a 401K.....

legally?


There has to a reason(possible several) that only issue Zomney won't flip AND flop on is releasing his tax returns.

[JustABozoOnThisBus]

8. If the growth is hidden in a 401k, it might not show in a recent tax return.

An interesting read on the 401k growth:

http://open.salon.com/blog/steve_klingaman/2012/07/25/romneys_100m_ira_gaming_the_system_at_bain

[DiverDave]

5. Well, it depends on who you are.

eom

[closeupready]

6. True - IOKIYAR.

Always the same, that.

[randome]

7. You already have your answer regarding the difference between 'evasion' and 'avoidance'.

That's why I see it as counterproductive to call Romney on ethics. People tend to see ethics in a different light when conducted for 'business purposes'.

There are so many people involved in big corporations, eventually someone will see a way to make the numbers rise by finding a tax avoidance scheme.

It's also counterproductive, IMO, to lament a corporation's lack of ethics. Highlighting illegality is always good but calling a corporation unethical rarely does any good unless it's a big negative in the PR department.