Can you go to jail for not paying your taxes?
This time of year many people don’t have enough money to pay their taxes and aren’t sure how it should be handled. Perhaps you’ve gone years without filing an Income Tax Statement at all - and now you’re ready to play catch up. DebtPrison.Net doesn’t offer legal advice. The information found in this article is available on various websites across the web. The correct answer to ‘Can I go to jail for not paying my taxes?’ is……yes you can. But there are ways to avoid time in prison.
Do I have to pay a Federal Income Tax?
You may not have to pay an Income Tax, but you do have to file an Income Statement - like IRS Form 1040. State and Federal Laws are set up to bring criminal charges against you for failing to pay income taxes. In the United States you have to file a Federal Income Tax Statement if you received earned income. So if you only receive Social Security payments, you don’t have to file an Income Tax Statement. In most states you also have to file a Resident Individual Income Tax Form, like this one.
Perhaps you’ve heard some people say that you don’t have to file an Income Tax Statement. Some people say the IRS is illegal, unconstitutional, and downright unfair. Although all of these things may be true - you will still go to jail for failing to file - if the IRS can prove that you purposely failed to pay your required tax. These would be criminal charges and you could serve time.
What you should do
If you have earned income…….file a 1040, even if you end up owing tax and can’t pay. I highly recommend turbotax, it’s online and I use the free edition - costs nothing to use and you can file electronically. If you can’t pay it’s alright, you can pay later. One of my good friends is currently behind, he owes the IRS $500.00 bucks from 2006, he hasn’t paid them yet, but is paying them back this month.
Chances are there is an IRS office located at the local Federal Building in your home town. There are IRS professionals there who can help you fill out the correct forms and set up a payment plan if needed.
Make sure you are honest
Many people get in trouble because they failed to report all of their income to the IRS in a prior year. Or perhaps you took some deductions that you legally weren’t entitled to (claiming your brother’s kids as dependents - and he’s claiming them too). If you lied on a previous Income Tax Statement it better be an honest mistake. If it appears to be a mistake the IRS may let you off with taxes and penalties. But if the IRS finds a pattern of income deception (trying to hide income) you may end up paying in more ways than one. You could serve time in prison and end up paying the tax back.
You haven’t filed in years and think they forgot about you?
Don’t make this mistake. If you ever worked for a business that filled out any paperwork when you were hired - the IRS has a record of your employment and income with this employer. Your name, like many, is flagged in the IRS database as an Income Tax Evader. Believe me they are simply giving you enough time to hang yourself. Then they come galloping in with audits, penalties, and criminal charges. Why take that chance? If you are years behind walk into your local IRS Office, sit down and have an honest discussion with them. It’s better if you come to them first.
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July 2nd, 2008 at 3:45 pm
how do you report someone not paying business taxes? Also how do you have someone illegal deported?
Thanks
Jane
July 2nd, 2008 at 7:28 pm
Hey Jane,
Thanks for commenting.
Why would you want to report someone for not paying business taxes?
All they are doing is exactly what YOUR Federal Government wants them to. Do you really think it’s a coincidence that 20 million illegals are in this country? Do you really think it’s a coincidence that any border agents who’ve physically harmed illegals crossing the border, are themselves, thrown in jail?
Do you think it’s a coincidence that YOUR Federal Government only on extreme rare occasions raids a meat packing plant, or a large farm, just for the purpose of parading it out for the local and national camera crews to give America a false impression that they are in any way interested in doing something about this issue.
The issue of illegal immigration and evasion of employment taxes by employers is a conundrum created, encouraged, and protected by YOUR Federal Government and President.
Just exactly who do you think is going to pay all the necessary taxes and fill the jobs of the retiring baby boomers since we’ve aborted 50 million American citizens since 1974? After all someone has to be around to tax in order to pay for the bankrupt system of social security, medicare, medicaid, etc, etc… not to mention the thousands of corporations that need the additional warm bodies in the U.S. job market earning wages and purchasing products at the local Wal-Mart. Wake up and smell the coffee dear.
August 5th, 2008 at 9:19 pm
i know a person that has a MOTEL AND DINNER FOR 10 YRS. HE SAID HE NEVER FILED INCOME TAX CAUSE HE PUT IT IN HIS WIFES NAME I TOLD HIM THE IRS COULD TAKE HIS MOTEL AND DINNER WAS I RIGHT.
August 5th, 2008 at 9:42 pm
Hey len,
Well they could audit the business or them as individuals. The IRS loves auditing folks who have a business. In this case they would audit the couple and hit them with past tax debts as well as interest applied to anything beyond last years filing date. The fact that the business is in his wife’s name won’t make a difference…. at least I don’t see how it would matter.
barry b.
October 15th, 2008 at 10:37 am
Is there a legal way to not file a tax, an not go to jail. A man was tell me that there is a form with the IRS you can file .
October 15th, 2008 at 5:10 pm
Well that depends on the circumstances. Even if you don’t file and they decide to audit you…. you would most likely not go to jail anyway as long as you attempt to pay any monies they claim you owe. However, if you make over $6,500 you should file a 1040..
October 23rd, 2008 at 1:34 pm
i owe 5 years in state and federal taxes. i cant afford payments and to be honest i dont want to pay. is there anyway i can make a deal with the irs to pay my debt off in federal prison time
October 23rd, 2008 at 3:29 pm
You need to talk to a tax lawyer..