Embezzlement is the theft or misappropriating of funds or assets belonging to a company or government. It is the misusing of property lawfully entrusted to a person who then converts it for his or her own use. Accounting embezzlement is hiding the theft of funds by the manipulation of accounting records. Embezzlement is most commonly a corporate crime.
There are many different ways to embezzle funds. "Skimming off the top" is when a person continually takes a small amount over a period of time. Someone may disappear after taking a large amount of funds. Managers may steal money by under-reporting income and keeping the unreported funds.
The US Internal Revenue Service requires the reporting of all income when a person files their income tax forms. Failure to include embezzled funds in their gross income can bring charges of tax evasion by the IRS. This is in addition to any other jurisdictions criminal charges of embezzlement.
References[change | change source]
- ↑ "Embezzlement". NOLO. Retrieved 10 December 2015.
- ↑ 2.0 2.1 2.2 "Embezzlement". FindLaw. Retrieved 10 December 2015.
- ↑ 3.0 3.1 3.2 "Embezzlement". Cornell Law School. Retrieved 10 December 2015.