An Overview of Criminal Tax Fraud Cases and Consequences in the State of Utah
| Jurisdiction | Utah,United States |
| Citation | Vol. 23 No. 3 Pg. 22 |
| Pages | 22 |
| Publication year | 2010 |
Vol. 23, No. 3, 22. An Overview of Criminal Tax Fraud Cases and Consequences in the State of Utah
Volume 23 No. 3
May/June 2010
Benjamin Franklin, in a letter to Jean-Baptiste Le Roy in 1789, is credited with saying that "in this world nothing can be said to be certain, except death and taxes." For this, Mr. Franklin is well known and credited. But another aphorism accredited to this great man is as follows: "There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government."
Why this is so, is anyone's guess. Theories include the relative anonymity of taxes, the collection, receipt, and accounting thereof, and the actual or perceived complexity of the tax system. As well, there is an undercurrent of disobedience on the part of some individuals, justified by them on one level or another, often on the basis of not liking one or another government policy, program, or process. A more likely explanation, however, is the simple and fundamental truth that some people just do not like to pay actual, real money to anyone when they may get away with not doing it, or when there is not an immediate, observable return on the investment. It seems clear that greed and selfishness play a large, perhaps overwhelming, role in motivating individuals to be non-compliant with their obligations when it comes to taxes.
The federal government is the most widely known entity for the creation and enforcement of tax laws, and for the pursuit of those who choose not to comply with those laws. Most efforts at compelling compliance take the form of audits, or at least the threat of an audit. In more egregious cases, criminal prosecutions are instigated at the federal level. The bases for federal tax-related prosecutions are found in Title 26 of the United States Code and include such offenses as tax evasion, failure to file, the filing of false or fraudulent returns, or aiding or providing assistance relating to the filing of fraudulent returns. Closely related and often-used criminal enforcement tools at the federal level involve charges of money laundering and other currency violations.
State governments likewise pursue and prosecute individuals and, occasionally, businesses for violations of the criminal code as it relates to taxation. Utah's primary tax fraud statute is Utah Code section 76-8-1101, which reads in pertinent part:
Criminal offenses and penalties relating to revenue and taxation - Rulemaking authority - Statute of limitations.
(1) (a) As provided in Section 59-1-401, criminal offenses and penalties are as provided in Subsections (1)(b) through (e).
....
(c) (i) Any person who, with intent to evade any tax, fee, or charge as defined in Section 59-1-401 or requirement of Title 59, Revenue and Taxation, or any lawful requirement of the State Tax Commission, fails to make, render, sign, or verify any return or to supply any information within the time required by law, or who makes, renders, signs, or verifies any false or fraudulent return or statement, or who supplies any false or fraudulent information, is guilty of a third degree felony.
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(d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax, fee, or charge as defined in Section 59-1-401 or the payment of a tax, fee, or charge as defined in Section 59-1-401 is, in addition to...
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