Tax evasion is usually known as an act in which an individual intentionally chooses to not to pay income taxes that is due on him or her.
This act of not paying taxes may be done by simply choosing to not file an income tax return, or choosing to not to include any information that is about taxable income on the filed return. In all instances, it is considered that a tax evasion is a fraud, and so it usually carries stiff penalties.
Intention of the individual plays a key role
While there are some by which it is considered that any type of omission from the tax return to constitute tax evasion, it is important to remember that it is possible to omit an item just due to the reason that the data was overlooked when filing the return.
Thus, the intention of the individual plays a key role while determining if tax evasion has occurred or not. When the return fails to include information just due to the reason that the filer overlooked the data, there is a good chance that the tax agency will still impose a fine of some sort, but it would not take any further action. 
What if an individual intentionally attempted to hide information about income?
However, when it can be elaborated that the individual intentionally attempted to hide information about income that was subject to withholding, the tax agency may choose to impose more than just a simple interest fine on the amount that has been omitted. The filer may be subject to stiff fines that are associated with the deliberate failure to file an accurate tax return, or as a result of this he or she even possibly face prosecution and some time spent in jail for the intentional negligence.
Tax evasion is a crime
Tax evasion is considered to be a crime, and it is often classified as a fraud. All citizens suffer from tax evasion, as the act prevents the government from collecting funds in order to use for the operation of essential services to the population. When these funds are not collected by the government, then services have to be curtailed and thus they show their result in a lower quality of life for all citizens.
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{ 2 comments… read them below or add one }
It really is astounding how much money the IRS says that they lose every year due to tax evasion (even on a small scale for many people it adds up in the aggregate).
Implementing a Flat Tax System is the solution to all our problems. There will be much less evasion, and clearly there are folks passionate about it since there are over 100+ comments on the subject we posted at Financial Samurai! Go Flat Tax!