I'm curious, I heard of both famous and nonfamous people not paying their taxes before. But I've also heard about them not paying them for years and years, so I'm curious how long do you have to go without paying taxes before the IRS goes after you and you are threaten with prison life? I mean it's bad enough that people who pay taxes after April and May (federal and state) have to pay a fine, so how do others get out of paying taxes for years?
2006-12-12 03:15:40 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
There are people who refuse to pay taxes, or at least fail to file, for all sorts of reasons.
The actions of the IRS depend mostly on the political mood of the country. For a while, the IRS was told to go crack down on "tax cheats." However, after a while, the political mood changed when the public saw some very sad stories of IRS enforcement actions. Right now, the mood is very lenient.
If the IRS thinks that you owe a significant amount, and / or they see you as someone that is leading a tax rebellion, then they will come down on you like a ton of bricks. While there are formal procedures that must be followed, generally the IRS will take all bank accounts, stocks, property, boats, cars, etc etc.
In addition, there are criminal actions that are taken. "Failure to file" is a lesser charge than "Tax Evasion" or even "Tax Fraud" but they all send you to prison for a while.
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2006-12-12 03:42:21 · answer #1 · answered by geek49203 6 · 0⤊ 0⤋
Most of them file, and pay, a portion of their taxes. The problems arrive when they neglect to declare ALL their income, or produce bogus expenses.
It takes the IRS a few years to catch up to you, if you cheat. The sheer volume of information they receive, coupled with the ineptitude of the staff and the money they waste slows the process way down. Odds are if you ever get a serious audit in your life it will be 2 or 3 years after you file.
So then you filed the same crap for 2 or 3 more years before that is caught too.
Our tax system is wasteful and stupid and it serves our government right that so many people screw with them.
2006-12-12 08:54:42 · answer #2 · answered by Gem 7 · 1⤊ 0⤋
Some people live "Off The Books".
They work for cash. They make a lot less but in their mind, they are "free". If there is not a paper trail, it is next to impossible for the IRS or the state to track them down.
If you work a normal job and receive a W2 and/or 1099 at the end of the year, the IRS will eventually catch you. You only have to worry about prison if you commit fraud (ie Richard Hatch).
2006-12-12 03:24:56 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
hmmmmmm i often wondered the same thing about the rich people i guesss they have inside connections with uncle sam lil brother scott,then they miss a payment to scott, then he tells uncle sam lol then uncle sams advertises his business to the world of the poor and rich then someway the rich gets 100 hours of community service, does a public speech to kids about paying their taxes when they get a job, pays 1,000 and live 10 more years without paying taxes again there is power in the root of all evil $$$$$$$$$$$$$$$ money lol
2006-12-12 04:22:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depending on how much you owe, they will either send you letters, freeze your assets, or take you to court. The penalties and interest continue to accrue from April 15th of the file year.
2006-12-12 03:24:40 · answer #5 · answered by Dana B 2 · 0⤊ 0⤋