
Tax fraud: What it is and what you should know to avoid scams
Tax fraud can come with hefty penalties and fines, even jail time. Tax evasion is a type of fraud. But tax avoidance is legal.
Amy Hoak is Bankrate contributor and a freelance writer in the Chicago area. Her work has appeared in a variety of online publications, magazines, newspapers and wire services, including MarketWatch, The Wall Street Journal, Reuters and Rotary Magazine. She began writing about business and personal finance while working as a newspaper reporter more than 20 years ago, and enjoys covering stories that help people manage their money. Amy also works as a grant writer, specializing in helping nonprofits and artists obtain funding for their projects.
Tax fraud can come with hefty penalties and fines, even jail time. Tax evasion is a type of fraud. But tax avoidance is legal.
Al Capone may be the face of tax evasion and all that can go wrong if you purposefully don’t pay your taxes. But tax avoidance is legal, and even encouraged by financial experts.
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