If I cut corners on my business taxes as advised by my CPA, am I at risk for tax fraud?

Be careful. There’s nothing wrong with using legal methods to minimize taxes—for example, taking full advantage of permitted deductions. But if you intentionally evade paying taxes you owe, you could find yourself guilty of tax evasion.

Tax evasion includes failing to report taxable income, reporting income inaccurately, or illegally avoiding paying taxes. The most common method of tax evasion is failing to report taxable income, especially cash income.  But however you evade paying taxes, the government takes a dim view of it and imposes serious penalties. 

Punishment for tax fraud can include large civil penalties, criminal fines, and even imprisonment. If you are concerned that your accountant is being too aggressive in tax planning for your business, consult an attorney experienced in taxation to help you walk the line between legal tax avoidance and illegal tax evasion.