If you’ve thought about squirreling away cash from your side gig and hiding it from the Internal Revenue Service, you are not alone.
A recent study by Credit Karma Tax showed that 6 percent of about 2,000 people polled ‘fessed up to fibbing on their taxes.
“We found that most Americans really want to pay the right amount of tax,” said Rick Chen, a spokesman for Credit Karma Tax. “They’re focused on paying their fair share.”
There’s a price to pay for trying to get around the IRS.
“Not reporting your income, or tweaking your income so that you fall below a certain threshold to take advantage of a tax credit, is against the law,” said Chen.
Common fees levied by the IRS include failure to file, which carries a penalty of 5 percent of the unpaid tax, and failure to pay, which has a penalty of 0.5 percent of the tax not paid by the due date.
In more egregious cases, however, individuals who evade their taxes may be found guilty of a felony and face up to five years in prison and $250,000 in fines.
Here are the areas where filers have admitted to being less than honest with the IRS, according to Credit Karma Tax.