Tax evasion is the deliberate failure of the filer to report the true amount of tax. Sales tax evasion is the intentional failure to proved the correct information on sales tax collected for the period of the file. Sales tax evasion can take several different forms. An individual may fail simply to report the sales tax collected. The retailer may not report all the sales on which sales tax was due. The retail business may ask for and accept cash. In general, sales tax evasion involves filing a false sales tax return. It may be through underreporting the amount taken in. The retailer may also not file a sales tax return. In all instances, sales tax evasion results in difficulties for the financial situation fo the city, county, state or federal body who receives the taxes. It may have a negative effect upon the existence or delivery of certain services. Sales tax evasion is a serious crime. In most states, it is punished by a combination of fine and/or sentence. The fine may involve a penalty that includes interest.