If federal tax is actually voluntary, why do they throw people in jail for not paying them??

Question

I really have to know.

Answer 1

The "voluntary" part of the tax code means that you are allowed (and encouraged) to report your income yourself and calculate your tax liability. The process is called "Self Assessment." If you fail to self-assess (file a tax return) the IRS will use the information that they have available and file one for you. Of course, they don't have all of the information on your deductions, exemptions, credits, etc. so the tax they assess will be much higher.

Self Assessment is voluntary. Paying taxes, or filing a return when the IRS orders you to do so, is NOT voluntary.

If you failed to file a return when the IRS ordered you to do so or pay any tax that they levied as a result of their assessment of your tax liability you could be thrown in jail eventually. That's the last resort, of course, and it usually takes several years of inaction on the part of the taxpayer before it ever gets to that point. The IRS would much rather you be earning income and paying your taxes than let you rot at taxpayer expense.

Answer 2

As pointed out the voluntary part is related to the reporting of the income.

As to your question why the IRS (working with other related Government agencies) throw people in jail for not paying taxes is a totally different event.

Reporting of world-income is much different from the criminal intent of failure to pay an assessed tax ( more correct to state the re-assessment of the tax owed)

Reporting consists of three levels
1. reportable and taxable
2. reportable and non-taxable
3. non-reportable and non-taxable

Your volunteer reporting is based on the simple fact that if you enjoyed or received a benefit then you have an income to report. Whether that reported income is taxable or not, is a whole new issue.

The criminal liablities imposed for failure to settle the outstanding account covers numerous types of charges and ranges from simple offences to felony.

If you need more specific information, try spending an hour googling different words and phrases to narrow down your true interest.

Try - IRS, fees, fines , penalities - failure to remit

or try - Tax Evasion, Tax Avoidance, IRS Liens,

hope this helps you out

Answer 3

Federal tax is NOT voluntary. Taypayers are required by law to report their income and pay applicable income taxes to the IRS.

Answer 4

When they say "Voluntary", they are referring to voluntarily reporting your income. If you don't voluntarily report your income, the IRS will calculate your tax due for you. This will probably be much higher than what you calculate.

Answer 5

Maybe because it's NOT voluntary, but those people claim it is?

Now you know.

Answer 6

Where'd you get the idea it was voluntary?