Imagine smash and grab person, he or she will be charged for that, but bot for selling that and not taxing that profit. Or small scale drug dealer, he makes money but does not get charged with tax evasion. Same for robbery or embezzlement or anything. Why are tax evasion charges not being added on top of original charges??
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Jurisdiction and the difference between a civil case and a criminal case.
A county cannot prosecute for state level tax evasion, and a state cannot prosecute for federal tax evasion.
In most places, taxes are a civil offense. Civil trials to do not happen the same way or in the same courtroom as criminal trials.
It is a ton more work and effort to figure out and have evidence that the person sold $5,000 and reported nothing in taxes, then it is to say the person was caught selling something illegally and providing evidence.
To prove the amount someone has failed to pay in taxes would require evidence of every transaction. (most criminals do not keep a ledger of their illicit deals)
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