What Happens When You Don’t Pay Taxes: Important FAQs - Axiom Tax Resolution Group

Can you go to jail if you don’t file taxes? Are you at risk of being arrested if you don’t pay your taxes? The short answer is yes. How likely this is depends on the size of the fines and penalties you still owe. Are you looking for some additional information about tax crimes? Don’t panic! We’ve got everything you need to know below.

What Happens When You Don’t Pay Taxes? Important FAQs

If you fail to pay your taxes, the IRS will take action. In most cases, the IRS will attempt to contact you first. If you don’t respond, they may send you a letter stating that taxes are due. If you’re still not getting in touch with the IRS, they may file a tax lien against you. This holds the government’s right to your property until you pay the taxes that you owe. If you don’t take action to amend your tax debt or pay your taxes, the IRS may then seize your assets.

In most cases, the IRS will work with you. However, if you’re delinquent for more than three years, the IRS will assess penalties and interest. The longer you wait to pay your taxes, the more the penalties and interest accrue. If you don’t take action to amend your tax debt, the IRS will validate it.

Are Tax-Related Crimes Civil Cases or Criminal?

Tax-related crimes can be civil or criminal. This depends on the severity and the amount of taxes owed. For example, a tax evasion is a criminal act. If you’re charged with tax evasion, you’re at risk of being imprisoned. If you’ve not paid your taxes for three years, however, the IRS can assess taxes, penalties, and interest against you. This is still considered a civil tax-related crime, but it could still have severe punishments.

How to Avoid Tax Consequences

If you have unpaid taxes, it is important that you act immediately. There are a number of steps you can take to avoid the consequences.

First, don’t wait to file your taxes. You should file your taxes as soon as you receive your W-2.

Second, take action to amend your tax if you owe taxes. Call your CPA if you’re having trouble with this. If you don’t act to amend your tax, you’re at risk of having your tax lien placed against you.

Finally, don’t wait to pay your outstanding tax debt. If you’re having trouble affording your taxes, you should contact the IRS. Or, you can look into a tax relief program to get a reduced amount and the ability to pay slowly.

Conclusion

If you have outstanding tax debt, you need to respond to the IRS. If you don’t, you’re at risk of fines, penalties, and interest. In most cases, the IRS will work with you to amend your tax or pay your tax debt. If you’re having trouble affording your tax debt, you can contact the IRS or look into a tax debt relief program.

Ignoring IRS tax issues can be a costly mistake. The trusted tax professionals at Axiom Tax Resolution Group are ready to find a permanent solution to your tax problems with the IRS. Call us today to find out your options.