Is It Possible to Get Jail Time For Defaulting on Your Taxes?

Possibility of Taxpayers

It is common knowledge that the IRS doesn’t take kindly to violations of the Tax Code such as failure to pay taxes as and when they fall due. Generally, taxpayers do not get arrested if they don’t pay their taxes, but failing to file returns is an arrestable offense. The arrest, however, won’t happen unless the taxpayer has been intentionally evading the IRS while owing a lot of money. The best way to avoid such a scenario in the event that you can’t pay what you owe is to seek the assistance of an experienced IRS tax attorney. Leading IRS attorneys in Fort Worth, Texas can work with the IRS to reach a settlement or payment plan that puts the problem to bed. In this blog, we are going to discuss the possibility of taxpayers getting arrested for not filing their taxes.

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The Effect of Not filing tax returns

One of the most common mistakes that taxpayers make is that they assume the IRS won’t be in a position to know what they owe if they don’t file their taxes. This couldn’t be further from the truth. The IRS has a complete database that allows it to track people’s incomes. As a result, the government agency will know every taxpayers’ exact income and what they owe in taxes. While the IRS won’t take immediate action, it will eventually send a tax bill, notifying defaulting taxpayers about their tax liability and penalties, if any. As mentioned earlier, the IRS won’t attempt to arrest defaulting taxpayers right away. If, however, a taxpayer doesn’t take action even after receiving the IRS notification, the end result may be an arrest.

The Filing of Criminal Charges

When a taxpayer receives a notification from the IRS and still fails to take action, the IRS assumes that they are willfully defaulting. In such a scenario, criminal charges for tax fraud may be filed against the defaulting taxpayer. Deliberately avoiding taxes can lead to 3-5 years of jail time. The jail time is generally accompanied by hefty financial penalties. Not every defaulter, however, gets to be charged with tax fraud. In the event that a taxpayer didn’t default on purpose, the IRS expects them to immediately work on resolving the issue.

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What to do if the IRS sends a wrong notification

In rare instances, the IRS will mistakenly send a tax default notice. If such is the case, it is quite natural for the recipient of the notice to be confused. It may be difficult to know how to proceed in the absence of help from an IRS tax attorney. Leading tax attorneys in the Dallas – Fort Worth area can walk you through the process and plead your case to attain a favorable resolution.

Final word

As you can see, only wilful attempts to evade taxes can land someone in jail. If you have tax debt and are unable to pay the full amount at once, you should look for proven tax help in Dallas – Fort Worth. IRS tax attorneys can help you explore the different debt relief options to apply for one that is best for you. When looking for a reliable Dallas – Fort Worth tax lawyer, look no further than the Law Offices of Nick Nemeth. Our team of experienced IRS tax attorneys in Dallas – Fort Worth, TX, can help resolve all IRS tax problems including getting debt relief. Contact us today for a confidential no-obligation consultation at (972) 426-2553 or fill out our contact form, and we’ll get back to you as soon as possible.

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