How to Spot Tax Evasion

You may not like paying taxes, but understand it is your duty, and the law. And while you play by the rules, know that someone who is cheating on their taxes just pushes their fair share onto you. You'd be willing to turn them in; but first you need to know how to spot tax evasion. Read on to learn more.

Instructions

1. Listen for bragging. The government says an amazing number of cheats are caught because they boast about not paying all their taxes. If you pay attention, you can spot tax evasion just by listening.

2. Be alert for unusual behavior. If your neighbor makes very little money, but buys a new sports car with his tax refund, you may have just spotted tax evasion.

3. Watch for two sets of books. This is a common way of manipulating financial information, since one report includes the real numbers. The other will be "cooked" to deceive the government.

4. Study the cash register. You may be able to spot sales tax evasion if the store frequently doesn't ring up purchases or issue a receipt. Sellers who set prices lower than market value may also be cheating on their taxes.

5. Check out the gasoline pump. Gas tax fraud is common, so look for fuel deliveries at strange times, or shipments arriving in trucks that arouse suspicion or have out of state license plates. A gas station that sells for less than it's competitors may be involved in tax evasion.

6. Smoke out tax cheats. You may be able to spot cigarette tax evasion by finding packs without the Surgeon General's warning, or with a label that says something about "tax exempt" or for use only outside the United States. Look for a tax stamp on each pack, since most states require them.