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Is Tax evasion a Felony?

Is Tax evasion a Felony?

Tax evasion is the use of illegal means to escape the responsibility of paying your tax liabilities. Every year, countless people who earn an income pay a percentage in taxes to the government and you may wonder why people find it so easy to part with their money. Well, the answer is no one likes to give their money away, but they are aware that failure to pay their taxes may result in unpleasant consequences for them in the future.

When you fail to pay your taxes when they’re due, the IRS will send you a bill reminding you that you have unpaid taxes to be resolved. You are expected to respond to this bill within 30 days. If you fail to respond before 30 days, you will get another notice from the IRS with a 90 days notice; this sums up to a hundred and twenty days. As these 120 days go by, your tax compounds up and 25% of your original tax liability is added to the sum that you already owe.

It is impossible to hide from the IRS. Delaying your taxes is simply postponing something you’d eventually have to do, but now in a more demanding way. The more you postpone paying your tax, the greater the amount you have to pay as interests and penalties accrue.

If you are unable to pay your taxes due to financial difficulties, contact us now to help you negotiate a tax payment plan that will work best for you. The IRS has provided options for people who have huge tax debts and there are legal ways you can pay less than the amount you owe. There is also the option to pay in installments.

Ignoring the legal provisions made to ease your tax payments and choosing to use illegal means like hiding your taxable income and misrepresenting your taxes instead is tax evasion and it is considered a crime.

Tax evasion is an example of tax fraud and it is a felony. You can be charged with tax evasion if there is evidence that proves that you inflated deductible expenses, hid taxable income, or failed to file your tax returns in order to hide your income.


Can you go to jail for not paying your taxes?

Financial situations can get really tough that they make tax payments seem impossible. Evading your tax is a crime but you can not be sent to jail for not having money to pay your tax.

You should, however, file your taxes regardless of whether or not you have the financial capacity to pay up. While you seek ways to pay your tax or get a suitable payment plan, you should always file your tax returns. The IRS is lenient on people who do not have money to pay their taxes but it is not on people who fail to file their tax returns completely.


Can you go to jail for not filing taxes?

Tax fraud happens in different ways and the IRS frowns at all forms of the act. Evading your taxes or helping someone evade theirs is a form of tax fraud that can attract a jail term.

Not filing your returns is also a crime. In fact, you can be sentenced to serve a jail term, one year for each year that you failed to file your tax.

With this in mind, you should file your taxes promptly even when you do not have the financial capacity to pay. The penalties and consequences of failing to file your taxes are direr than the ones for failing to pay up.

Do you need help filing or amending your tax returns? We can help!

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Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.