Can You Go To Jail For Not Filing Taxes?

Many penalties come along with not filing and paying your taxes on time. However, you might be fearing the idea of jail time more than any other penalty. In truth, the IRS will rarely send someone to jail for failing to file or pay taxes. However, jail time is a potential consequence of not filing and paying back taxes to the IRS. You want to avoid jail time at all costs, of course. Therefore, you should know under what circumstances the IRS could send you to jail. In general, if you’re having trouble sorting out your taxes, you should consult a tax relief expert. A tax relief professional can help you figure out which steps to take to fix your back tax debt.

When does the IRS put taxpayers in jail?

The IRS doesn’t want to punish those who can’t pay back taxes with jail time. Even though their goal is to take your money, the IRS understands financial hardships. However, they save jail time punishment for the most extreme cases of criminal taxpayer behavior. The IRS will usually recommend jail time for people who commit tax evasion. Tax evasion involves any action taken to evade the assessment of federal or state taxes. U.S. citizens can receive up to five years in prison for each tax evasion crime.

Additionally, if you are found guilty of helping someone evade paying taxes, you can also be charged with tax evasion. Even if the taxes aren’t your responsibility, you can still face jail time. A typical sentence for helping someone commit tax evasion is three to five years in jail. Additionally, the IRS can have you put in prison for failing to file a tax return. You could get up to one year in jail for each federal return you fail to file.

Is there a statute of limitations for failing to file taxes?

The statute of limitations for tax evasion and failure to file can be as long as six years. Typically, the statute of limitations period doesn’t start until you file the missing returns. The statute of limitations can follow someone for years as they’re trying to remedy their tax debt situation. Avoid going to jail and getting into back tax debt by seeking the help of a tax resolution professional.

What other penalties exist for delinquent taxes and missing returns?

As we mentioned above, the IRS will not place people in jail if they cannot merely pay their back taxes. The IRS realizes that some taxpayers are in bad financial situations and don’t have enough money to pay back taxes. Some individuals may not earn enough money or have enough assets to settle their back taxes. Placing these individuals in jail would not be an effective way to settle back taxes. However, there are still consequences for failing to file and pay taxes. Those who can’t afford to pay back taxes will not get jail time, but there are consequences. The IRS charges a 5 percent penalty to what the taxpayer owes for each money the back tax is delinquent. That penalty maxes out at 25 percent of the total back tax debt. 

There are still penalties for filing taxes late

If you file your taxes but do so 60 days late or more, the IRS will add a penalty of $205 or 100 percent of the total tax debt. Added penalties can make paying off tax debt time-consuming and expensive for taxpayers. However, you can easily avoid these penalties. Taxpayers are advised to file their returns on time and pay their accounts immediately. For those who cannot afford to pay off their tax debt quickly, they should consult a tax resolution specialist. Some people still cannot pay what they owe to the IRS. If the IRS doesn’t get the money they’re owed in back taxes, they can take collections actions to get their money. 

What collection efforts does the IRS use to get taxpayers to pay back taxes?

The IRS can use additional collection efforts to recover what a delinquent taxpayer owes in back taxes, including:

–    Tax Liens

–    Wage garnishment

–    Bank levies

–    Property seizure

The above actions will continue until the taxpayer has settled back taxes. To prevent the IRS from taking the above measures to collect your back taxes, contact a tax relief specialist. The experts at Platinum Tax Defenders have been helping their clients get out of tax debt for years. 

Are there other consequences for having unfiled tax returns?

Taxpayers may find it difficult to proceed with other financial and legal transactions with unfiled tax returns. A taxpayer may find it difficult to file for bankruptcy unless the last two years of tax returns are up to date. Additionally, taxpayers with unfiled tax returns may be turned down for student, business, or personal loans, or a mortgage loan.

Tax resolution for unpaid back taxes

There are many options available for taxpayers with unfiled tax returns or outstanding back taxes. However, it may be confusing trying to figure out which tax resolution option is best. Working with a tax relief expert will help you define the best tax resolution option for you. Platinum Tax Defenders have over a decade of experience working with the IRS. We have saved thousands of clients hundreds of thousands of dollars in back tax debt. There are several options available to you to get back in good financial standing with the IRS. Some of these options include:

–    Installment Agreement

–    Offer in Compromise

–    Currently not Collectible

 As mentioned above, the IRS saves jail time for those who purposely evade filing and paying taxes. However, even if you aren’t a criminal, there are other consequences you can face. Avoid collection activities by working with a tax resolution expert to settle your back taxes.

Get Help From A Tax Relief Professional

Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.