According to the Internal Revenue Service, Americans owe upwards of $120 billion to the IRS in back taxes and interest. Even though the agency has created a long list of IRS penalties that people will face if they don’t pay taxes, many Americans still fail to do it each year. If you’re one of them, you may wonder, “How much do you have to owe the IRS to go to jail?”
It’s unlikely that you’ll end up behind bars for not paying taxes to the IRS. However, you should know it is a distinct possibility in certain cases, especially if the IRS proves you’ve committed a crime by not paying taxes.
Discover more about how much you have to owe the IRS to go to jail below.
If you owe money when you file your income taxes with the IRS in April, you can immediately square things away with the agency. Tax preparation services can help you make payments to the IRS so you don’t ever find yourself asking, “How much do you have to owe the IRS to go to jail?”
If, however, you choose not to pay taxes to the IRS at that time, you’ll eventually receive a bill in the mail from the IRS. From there, the IRS has a collection process designed to help them follow up with those who haven’t made tax payments.
The IRS may agree to work out a payment plan with you as part of this collection process. But if you continue to refuse to pay taxes, the IRS can go as far as to file a federal tax lien and seek a civil penalty from you. This can enable the agency to levy assets to satisfy your tax debt, such as:
If you don’t pay back taxes, the IRS can even take your vehicles, real estate, and other possessions.
If you have a big tax bill hanging over your head and you know you can’t pay it off anytime soon, this is when you might start to ask, “How much do you have to owe the IRS to go to jail?” You’ll be happy to hear that, typically, the IRS will not try sending you to jail over back taxes.
The only time the IRS will take legal action against you to send you to jail is when the agency suspects you’ve committed tax evasion or tax fraud following a tax audit. You might also face jail time if you simply choose not to show tax compliance by failing to file tax returns altogether each year.
Ideally, you should respond to any letters about back taxes you owe to the IRS as soon as possible to pay them off. If you can’t do this, it’s also worth touching base with tax consultants who can help with back taxes. They can keep you out of jail by showing you how to respond to the IRS.
If you’re wondering, “How much do you have to owe the IRS to go to jail?” you’re probably stressed out beyond belief and worried about what your financial future might hold. The tax consultants from Levy & Associates can lend a hand with your tax troubles. Call us at 877-620-6490 or fill out this form to book a meeting with a tax specialist.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.