Can you really go to jail for not paying your taxes? The answer can surprise

The deadline to pay your taxes are days of distance. If your tax bill is not paid in full 15 April, you can receive A letter of the IRS saying Your taxes are turned. I am That can lead to the interest, the fees and in extreme cases, possible income time.

I’ve been an accountant for more than a dozen and I can say that the prison time is rarely the first step the internal revenue service takes must money. I am Tax agency will give you the opportunity to address the problem before you climb this extreme. But there are legal consequences for tax evasion or continuously failing to pay your taxes at a time.

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Here’s as you avoid legal problems and what you do if you can’t afford to pay your taxes.

Versus tax evasion failing to pay your taxes

The tax evasion is when you intentionally avoid paying taxes, often by an underoretor’s bulk or counterfeit of tax records. Eg, if earn $ 100,000 year, but wise only report 60,000 to your Return to taxthat’s fraud. It is a criminal act that can lead to severe consequences, including the process of jail. The IRS treats these cases as offers criminal because they involved intentionally deceive.

Failure to pay, on the other hand, occur when you have the tax but cannot afford the full amount must of the expiry date. This can be because of a difficulty or financial errors in your TAKE TAX. I am The honest mistakes or payments usually lead to IRS penalties and late fees, not prison. While tax evasion and failure are very serious, Evasion tax involves intentional mistake and bring the most ethical consequences as criminal charges.

That’s why it’s crucial to report all accuracy income – no matter how small – and ask a qualified tax professional if you have questions. If you want to reduce your tax liability, there are many legal ways of doing, as Deductions and tax creditsWith no fake documents and breaking the law.

What could happen if you don’t pay your taxes

Is not uncommon to face an unexpected Tax Bill that cannot afford to pay immediately. If you can’t pay your taxes in time, the IRS do not remember the extreme measures. Instead, the agency will be sending notices that throw your balance and explain how it was calculated.

According to what your letter involves, interest and penalties can also start to accumulate. If the following are ignoring, the IRS could then go after their money, as the garnacy of your wages (deduct a portion of your payment of your payment), put a pienor On your property or even putting the funds from your bank account.

The IRS typically begins with audiencesCollection letters and after the refund options. However, if not paid taxes are ignored for an extended period, they could lead to the tax evasion alacer and potential of prison. While prison sentences for non-paid taxes are rare, they are possible. If the IRS sends you a letter in the mail, you will recommend you reply and reach a tax profession if you have any questions.

Be careful about tax scams. The IRS never start contact via phone or email. If you receive a call or email that pretend to be from the IRS, it’s probably a scam. The IRS always start with the sending, which include instructions and contact information.

Thing to do if you can’t pay your tax bill

Your tax bill is due on April 15 this year, even if you fix an extension. If you are unable to pay your full tax bill, don’t panic. The IRS offers the payment plans that You can install online or with your tax preparer.

If your bill is significantly larger and you can’t afford to pay the full amount, you can also ask a offer in compromise. I am This agreement lets you solve your debt with the IRS for less than your tax.

For example, you are unable to pay a tax bill that is $ 60,000, you may be able to solve your debt for $ 10,000 under the value program. With this option, the IRS considers your income, expense and assets to confirm if you have qualified for a lower refund option.

If you have the questions about your tax liability, it’s always better to plan for an appointment with an actor or food public account.

Double check your tax return before file

It is not likely to go into prison to make a tax payment to the IRS but it is important to make sure you are not undergoing your income and pay. When you present your tax return, be sure to double check the performance you are reporting. Is responsible for any errors or omissions, even if it were accidental.