Not filing your tax returns: Not filing your tax returns can land you in jail for up to one year, for every year you haven't filed your taxes. Falsify your income and credits on your tax returns: Any action you take to evade taxes can land you in jail for a period of five years. While the IRS doesn't pursue criminal tax evasion cases for many people, the penalty for those caught is severe. They must reimburse their taxes with a costly fraud penalty and possibly face jail sentences of up to five years.
The IRS can't send you to jail. When an IRS auditor audits your tax returns and detects possible fraud, you can initiate a criminal investigation. It should be noted that around 3,000 taxpayers are convicted of tax fraud every year. So, lying on your taxes is, in fact, a big problem for the IRS.
However, in general, the IRS rarely accuses taxpayers of fraud. So, even if they investigate you, you probably won't face criminal prosecution. The maximum sentence for tax evasion is five years. It is found in section 7201 of the U.S.
Internal Revenue Code. UU. You may also be required to pay financial fines in addition to serving time. The IRS can't send you to jail simply for not paying your taxes.
However, they can reach agreements or include it in payment plans that require payment every month until the debt is paid off. If you have unpaid taxes, the IRS can use a wide range of collection actions to get your money. The agency can issue federal tax liens, garnish your assets, garnish your wages, and take other actions. But you can't put him in jail unless he committed a crime.