What do you think would happen to the individual? Does the DOJ routinely impose sentences for imprisonment? Or is it more likely that the IRS would simply fine the person and demand payment in full for all taxes, penalties and fines? If they sentence the person to prison, how likely is it that they will be able to begin paying restitution?
Of course this circumstance assumes that the person is a U.S. citizen, fully aware of the obligation to pay taxes, yet willfully neglecting to file/pay.
2006-12-06 04:24:32 · 7 answers · asked by tramari25 2 in Business & Finance ➔ Taxes ➔ United States
Let us say that 5 years is the period and 10K per year was owed.
2006-12-06 04:48:06 · update #1
I know someone who just filed returns for 1998-2005. they ended up owing about $75,000 total. The IRS just kept sending letters and evenutally starting taking withholding out of their dividends and bank interest. They just got a notice that they have to appear in tax court for 2001. I think there is just penalities and interest(a lot-would have only owed about $50,000). No threat of jail time for them.
2006-12-06 06:13:37 · answer #1 · answered by Dana B 2 · 0⤊ 0⤋
Yes but only the interest you earn is taxed. For example lets say you win the lottery and in a year that money makes $50 000 interest. You pay the same tax as if you worked a job and made $50 000 in a year. Most people in this situation pay their taxes four times over the course of the year just so they don't have to pay it all at once in April. Anybody who doesn't get their taxes automatically taken out of their check usually does this
2016-05-23 01:05:24 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Worst case is a prison sentence. This is probably not real likely if you contact them before they find you, file back returns and make arrangements to pay.
High profile people, and formal tax protesters, are more likely to end up in jail than the common guy who would probably get fined instead.
A person in this circumstance would be wise to consult a tax attorney before doing anything else.
2006-12-06 05:07:11 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
It would be helpful is you explained how many years and how much money is involved. I don't think that $1000 per year for 2 years would result in the same penalty and 500k per year for the last 20 years. So it helps to have some framework.
2006-12-06 04:29:20 · answer #4 · answered by woodluvto 2 · 1⤊ 0⤋
well my hubby best friend went a few years with out paying taxes and when the irs cought up with him he had to repay them every week they took it directly from his paycheck and left him with about 50 dollars a week to live on lucky for him he was living at home with his parents..i got a friend who has not payed in about 6 yrs but they have not cought up with him yet and a ex sister inlaw who is in her mid 50s and she has never filed .. but she job hops alot when they find her she quits moves and starts all over ...but she owns nothing and well never own nothing not a good way to live and it is not worth the risk of one day getting caught
2006-12-08 14:36:48 · answer #5 · answered by ? 5 · 0⤊ 0⤋
jail
2006-12-06 04:31:44 · answer #6 · answered by frigon_p 5 · 0⤊ 0⤋
YOU MAY GET A NEW FRIEND NAMED BUBBA.
2006-12-06 04:27:46 · answer #7 · answered by ? 4 · 3⤊ 0⤋