Is tax evasion a grave sin?

[MaryV]

Ok, maybe my title is a bit misleading, because my husband and I pay our fair share of taxes. My question pertains more to side income.

Last year I sold stuff on eBay (I would buy stuff super cheap at garage sales and clean it up and sell it for a profit online, it’s not just stuff I already owned). Anyway, I profited around $550-$600 in the year of 2019 so not a ton, but a decent little side business with minimal effort. My question is this, is it a mortal sin to not report this income to the IRS? I was advised by my dad, who has done taxes for others for many years, told me that technically I could claim part of my house as my home office, (though there are some stipulations regarding this) and that alone would likely cancel out anything I owed, given that the profit doesn’t even reach $600. That and the gas I’ve spent going to thrift stores and shipping stuff (however I’ve not kept track of mileage and receipts for gas) would also benefit me. Anyway, would it me a mortal sin to just keep hush hush about the side income and not bother to go through the process of reporting it?

 

[Convert3]

You should discuss this with your priest in confession. He can best guide you regarding the state of your soul.
Regarding the home office, that area would have to be set up primarily for the running of your business and not for personal use, so I doubt that would qualify. Home offices frequently send up a flag and increase your chance of an audit. Probably not worth it.
Keep track of your mileage if you continue to do this. That may be of benefit.
My personal opinion is that this is bothering your conscious, so it might be best to pay the tax.

 

[MaryV]

My personal opinion is that this is bothering your conscious, so it might be best to pay the tax.

One slight problem is that state taxes have already been filed. I felt ok about not reporting them after talking to my dad, then husband filed state taxes, but then in the last few days I kinda got some second thoughts about it. So I don’t really know what to do…state taxes were already accepted…

 

[Convert3]

Amendments aren’t that difficult and are done all the time. You should talk to your priest. If you’re trying to find someone here to say it’s okay and to just let it go, you may be waiting a while.

 

[NoelFitz]

around $550-$600 in the year of 2019 so not a ton, but a decent little side business with minimal effort. My question is this, is it a mortal sin to not report this income to the IRS?

I am not a theologian and can only let you know my understanding of Catholic teaching. Whether you committed sin or not no one can say, only God is the judge.

It is a sin not to pay due tax, but for a small amount ($600, which is not grave matter) it definitely would not be a mortal sin.

We are all sinners and hope in God’s mercy.

Thus I would say it is not a mortal sin, but wrong, not to pay due tax.

Pay to all their dues, taxes to whom taxes are due, toll to whom toll is due, respect to whom respect is due, honor to whom honor is due. (New American Bible, Revised Edition (Washington, DC: The United States Conference of Catholic Bishops, 2011), Ro 13:7.)

 

[MaryV]

Maybe just make note of my profit last year and add it to the profit I make this year?

I will be talking to my priest today about this.

 

[Convert3]

You’re asking me? I would just do an amended tax return. They are to be paid in the year earned.

 

[MaryV]

You’re asking me? I would just do an amended tax return. They are to be paid in the year earned.

Yeah, sure…ok. One thing though that I’m a bit convinced about not really giving a darn to pay this little extra tax is that the government gives loads of money to places like planned parenthood to rip apart babies with my tax dollars so yeah don’t know man. I’ll chat with my priest when I go to confession today and see what he thinks.

 

[Convert3]

Nobody likes paying taxes, but we have to. I think you knew the answers to your questions before you posted here. You know what’s the right thing to do.

 

[MaryV]

Nobody likes paying taxes, but we have to. I think you knew the answers to your questions before you posted here. You know what’s the right thing to do.

If I knew the answers I wouldn’t have posted. :+1:t2: Just trying to get an idea of what to do. And my question was more of along the lines of what kind of sin it was.

 

[MaryV]

Thank you for your response!

 

[NoelFitz]

There is no need to ask a priest about whether one should pay taxes.

Look at the Bible, where I have already given one quote. Also note:

When they came to Capernaum, the collectors of the temple tax approached Peter and said, “Doesn’t your teacher pay the temple tax?” “Yes,” he said New American Bible , Revised Edition (Washington, DC: The United States Conference of Catholic Bishops, 2011), Mt 17:24–25.

Therefore, it is necessary to be subject not only because of the wrath but also because of conscience. This is why you also pay taxes, for the authorities are ministers of God, devoting themselves to this very thing. Pay to all their dues, taxes to whom taxes are due, toll to whom toll is due, respect to whom respect is due, honor to whom honor is due. New American Bible , Revised Edition (Washington, DC: The United States Conference of Catholic Bishops, 2011), Ro 13:5–7.

New American Bible , Revised Edition (Washington, DC: The United States Conference of Catholic Bishops, 2011), Mt 17:24–25.

 

[Vico]

Ok, maybe my title is a bit misleading, because my husband and I pay our fair share of taxes. My question pertains more to side income.

Last year I sold stuff on eBay (I would buy stuff super cheap at garage sales and clean it up and sell it for a profit online, it’s not just stuff I already owned). Anyway, I profited around $550-$600 in the year of 2019 so not a ton, but a decent little side business with minimal effort. My question is this, is it a mortal sin to not report this income to the IRS? I was advised by my dad, who has done taxes for others for many years, told me that technically I could claim part of my house as my home office, (though there are some stipulations regarding this) and that alone would likely cancel out anything I owed, given that the profit doesn’t even reach $600. That and the gas I’ve spent going to thrift stores and shipping stuff (however I’ve not kept track of mileage and receipts for gas) would also benefit me. Anyway, would it me a mortal sin to just keep hush hush about the side income and not bother to go through the process of reporting it?

Grave matter for theft is about $400 USD nowadays. (Adjusted for USA inflation since 1912 of $15 is $399)

Of course, the less the value of money at any given time or in any region the more of it would be required to constitute a mortal sin of theft, always, however, within the limits of the principle already laid down.
… it will not be deemed excessive to fix the amount for this country as ranging from ten to fifteen dollars …
There is no doubt but that small pilferings perpetrated at different times, whether to the prejudice of one or of many owners, can eventually coalesce and reach a sum forbidden under pain of mortal sin. The contrary doctrine was condemned by Innocent XI.

Delany, J. (1912). Theft. In The Catholic Encyclopedia. New York: Robert Appleton Company. Retrieved March 10, 2020 from New Advent: http://www.newadvent.org/cathen/14564b.htm

 

[Convert3]

There is no need to ask a priest about whether one should pay taxes.

The question was is it a mortal sin, not whether to pay taxes. That is best discussed with a priest so he can ask any questions he needs for clarity on the matter.

 

[Soubirous1]

if you legit overlooked it when filing, no harm done. i would contact irs with your problem because chances are you owe no taxes on the $600. i know gambling winnings up to $600 per bet are nontaxable. either way you have until April 15th.

 

[MaryV]

if you legit overlooked it when filing, no harm done. i would contact irs with your problem because chances are you owe no taxes on the $600. i know gambling winnings up to $600 per bet are nontaxable. either way you have until April 15th.

They were not overlooked and I intended to report them because I know my scrupulous nature. However when I asked my dad about them, he kinda convinced me that it wasn’t worth the bother reporting them. So my husband went ahead and filed the taxes. Then the last few days it was weighing on me.

 

[edward_george1]

I am not a theologian and can only let you know my understanding of Catholic teaching.

It is a sin not to pay due tax, but for a small amount ($600, which is not grave matter) it definitely would not be a mortal sin.

How do you arrive at this figure? What’s the cutoff? If we don’t pay taxes on $700? $800? If the number were $600, and someone were a dollar under, they’re not committing mortal sin? A cent under? This seems incredibly arbitrary.

There is no need to ask a priest about whether one should pay taxes.

In the case of the OP, who says she struggles with scrupulosity, it would be better for her to ask her priest than to get arbitrary answers from unqualified strangers on the internet. And you yourself say you’re not a theologian before attempting to interpret the Bible.

@MaryV, I would speak to your priest about this since scruples are involved.

-Fr ACEGC

 

[Soubirous1]

talk to a priest first please. i wouldn’t go telling irs you intentionally left out income unless a priest tells you to. they don’t take that lightly and you will not be rewarded for your honesty. the penalty for tax evasion is a bit on the severe side.

 

[Convert3]

If she files an amended return there won’t be a penalty for 2019. Even if there were, it wouldn’t be large.

 

[MaryV]

If she files an amended return there won eight a penalty for 2019. Even if there were, it wouldn’t be large.

There would be a penalty?