Tennessee Injury Law Center
Yet Another Reason Who Should not Cheat on Your Income Taxes
My income tax returns do not include income from a second job I have been working over the last few years. I was hurt in a wreck and missed 6 weeks of work from both jobs. Am I going to be able to recover my lost income from both jobs?
You might, but if you push too hard you may find yourself in the situation where the IRS finds out that you are been cheating on your taxes and you may face criminal and civil penalties for your failure to report income. Also, if the jury finds out that you have not been paying taxes as you should it may hurt your case.
Defendants in cases frequently ask for income tax returns to prove loss of earnings claims, and it your income is not reported it makes it very difficult to recover it. This is often a problem in cases involving small business owners, who all too often understate their income and overstate their expenses in an effort to reduce their taxes. Doing so is not only illegal but also hurts your ability to prove your true damages in a personal injury or wrongful death case.
This is yet another reason to fulfill your duty to our country and pay the taxes you owe. None of us like to pay taxes, but the way to have your voice heard on that issue is through the ballot box, not cheating on your taxes. To be sure, take legitimate deductions and seek tax advise as appropriate, but pay what you owe.
If you get hurt to the extent you are losing income but you have not paid taxes as required by law, tell your lawyer about it as soon as possible. An experienced personal injury lawyer can help you with this issue.