i hear all these stories and don't know what to believe. i know someone who hasn't paid taxes in over 6 years and now they are afraid to start paying because the irs might catch on to them. what kind of trouble would they be in???
2007-11-12 03:14:14 · 7 answers · asked by Sara S 1 in Business & Finance ➔ Taxes ➔ United States
You are far better to talk to your tax office and ask for their advice and help for the mess you are in, rather than wait for a knock at the door and find you will be charged with tax evasion.
2007-11-12 03:19:56 · answer #1 · answered by soñador 7 · 1⤊ 0⤋
In these cases, it is better for the taxpayer to come clean and pay the taxes before the IRS catches up to you. If the IRS catches you, they are much less friendly. If this taxpayer initiates the process, the IRS is more likely to wave penalties and interest (although not guaranteed) and more likely to negotiate payment terms (although not guaranteed).
Although it seems unusual that someone could get away without filing a return for 6 years. Usually after 2 to 3 years, you would expect a notice from the IRS.
2007-11-12 11:26:40 · answer #2 · answered by Homeslice 4 · 0⤊ 0⤋
For ordinary people, IRS will send correspondence asking you to file your returns and in more significant cases, assign an investigation to a local field employee. Few are big enough to warrant a criminal investigation. If you don't file your returns when asked, IRS can determine tax for you using its "Substitute for Return" process which generates a tax liability you will not be happy with.
2007-11-12 11:53:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
IRS can and will place liens, garnish wages. I have know people that IRS has taken they money from they bank accounts, garnish wages where it leaves them about $200.00 take home pay.
IT is better to request an installment agreement and pay as much as possible, IRS grant installment agreement for as little as $25.00 for total balance of $1500.00 or less,
2007-11-14 21:17:32 · answer #4 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
The IRS gets pissed and you are charged with tax evasion. Spino Agnew.
2007-11-12 11:22:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If a person doesn't pay their taxes they could be facing fines, penalties, seizures and possible jail time. It is so much easier to pay your fair share and be done with it.
2007-11-16 09:09:24 · answer #6 · answered by Gary 5 · 0⤊ 0⤋
you go to federal prison, as it is a federal crime. i know people who have done so. also, al capone, the notorious gangster, was never convicted of racketeering, but did go to jail for tax evasion. i think that was for eight years.
2007-11-12 11:24:25 · answer #7 · answered by CALLIE 4 · 0⤊ 0⤋