Source of Federal Income Tax Cheating

Source of Federal Income Tax Cheating

Not everyone has an equal opportunity to cheat on his or her taxes. Employees who have income withheld have fewer options for tax evasion than people who are self-employed or have complex business or financial dealings. Likewise, large corporations with foreign subsidiaries and sophisticated accounting departments have more opportunities to cheat. In all, it is wealthier Americans who are most likely to cheat on their taxes.

This chart was originally featured in Taxes Matter: 2011, a series of infographics and writings by Demos on the need for progressive tax reform.