What are the penalties for Spies tax evasion?

Featured Video Play Icon
How the IRS generates leads about suspected tax crimes
October 25, 2014
Featured Video Play Icon
Do later losses justify prior deductions?
February 4, 2015
Show all

What are the penalties for Spies tax evasion?

Spies evasion is a more serious offense than a simple misdemeanor for non-filing your tax return. This is because the mere non-filing of a tax return is typically a Section 7203 misdemeanor, while a Spies evasion offense may cause that offense to rise to the level of a Section 7201 felony—and a felony is a more serious offense than a misdemeanor. When might a simple Section 7203 misdemeanor for non-filing of a tax return rise to a Section 7201 felony? The answer is when one fails to file a return, and that is coupled with an affirmative action of evasion—commonly called “Spies evasion.”