Can You Really Go to Jail for Not Paying Your Taxes? The Answer May Surprise You

The deadline to pay your taxes is days away. If your tax bill isn't paid in full by April 15, you may receive a letter from the IRS saying your taxes are overdue. That can lead to interest, fees and in extreme cases, possible jail time. I've been an accountant for more than a decade and I can say that jail time is rarely the first step the Internal Revenue Service takes if you owe money. The tax agency will give you the opportunity to address the issue before it escalates to this extreme. But there are legal consequences for tax evasion or continuously failing to pay your taxes on time. Here's how to avoid legal trouble and what to do if you can't afford to pay your taxes. Read more: Is Your Tax Return Over $1,000? This Accountant Warns You Might Be Overpaying the IRS Tax evasion versus failing to pay your taxes Tax evasion is when you intentionally avoid paying taxes, often by underreporting income or falsifying tax records. For instance, if you earn $100,000 annually but knowing ... Read full article.