Can I Go to Jail for not Paying my Taxes?

Posted on November 21, 2017

Absolutely yes you can go to jail for not paying your taxes! Failing to file a tax return is a misdemeanor punishable by imprisonment for up to one year in jail.

Filing a tax return that you know is not truthful is a felony and carries a prison term of greater than one year. If you are a business owner and have employees, you are required by law to withhold taxes from their pay and to pay those funds to the IRS.

When an employer does not pay the withheld funds to the IRS, not only does the business now have an IRS problem, but the owner of that business can also be held personally liable for the withheld funds under the Trust Fund Recovery Penalty.

Worse yet, the IRS can criminally prosecute a business owner who willfully fails to comply with his or her statutory obligation to collect, account for and pay over income tax withholding, Social Security tax and Medicare tax. Violation of this provision carries with it up to five years in prison and a fine of up to $10,000.00. The IRS has recently stepped up enforcement in this area.

Whether your an individual or a business owner who has not paid your taxes in the past, it’s important that you contact a qualified tax attorney immediately to help mitigate the chance that you may end up in jail. The Chicago Tax Attorneys at The IRS Trouble Solvers® have been handling these types of cases for years. Contact them today for help.