Question

15.
When completing your tax return, which of the following can result in criminal penalties?

A.
An honest mistake

B.
Putting too many dependents on your W-4

C.
Omitting a social security number

D.
Intentionally failing to report all income

Answer 1

D.

Intentionally failing to report all income is tax evasion (a willful act) and can lead to criminal prosecution, fines and imprisonment. Honest mistakes or inadvertent omissions generally lead to civil penalties, not criminal charges, unless the conduct is willful or fraudulent.