Will I Go to Jail?
Though the law theoretically allows for jail time for not paying your taxes, I have not seen this occur in my thirty-five years of practice.
The reasons for unpaid taxes among employed people commonly include illness, job loss, divorce, or early withdrawal from a pension or profit sharing plan. Among self-employed people, the lack of any accounting system is the primary reason.
Can I make a deal for “pennies on the dollar?”
Be careful if you hear a sales pitch promising you can get a deal for pennies on the dollar.
Several years ago, the IRS was taking many low offers for the payment of tax. But now these low offers are no longer being accepted. Be careful if you hear a sales pitch promising you can get a deal of “pennies on the dollar.” You may be able to pay off at a low rate, but each offer is unique and depends on the financial circumstances of the taxpayer.
How Can I Pay Off My Tax?
There are a number of different ways that a tax can be paid off. Offers in compromise, payment arrangements, bankruptcy and statutes of limitation may all be used to eliminate all or part of a tax burden. Choosing the right one for your circumstances requires experience and judgment.