Is the IRS Going to Put Me in Jail?

The tax system in the United States known as a voluntary compliance. This simply means that you are volunteering your financial information and with his hand over the moola. If you do not, then the involuntary part of the equation comes into play. This is better than the IRS review is unknown. The fear of an audit can bring many grown men cry, but the fear of jail by a IRS action is even greater. Thus, there is a real danger of the IRS to you in prison?

Let's start with a simple idea. What is the purpose of the IRS? Goal is to collect tax revenue losses for the alliance. The agency turns into a number of ways. The primary method for "encouraging" compliance audit is to be done. In these tests, the agent for the IRS for people with low income or overstated deductions looks. What to do if the agent finds something?

In the massively overwhelming majority of cases, a> Exam but that turns something will transpire in the assessment of additional taxes, interest on the taxes and penalties. They are not in jail, it is not mentioned anywhere in this. Why? Now, it is difficult to pay the IRS if you are sitting in a cell. The IRS is in the business of maximizing the "milk of the cow." Putting the cow in prison does not make it.

I can see you're thinking:

"Yes, but I've heard all kinds of horror stories about the IRS.What about the actor, who stood in court and share tax fraud? What about racing? I also read about a tax attorney to go to jail. "

These are all true. The IRS has asked famous people to justice. Why? Because they are famous! Is there a better way to encourage "people to pay us regularly, as if the IRS is the winner of Survivor in prison? A degree of fear goes a long way when it comes to collecting taxes! As for tax lawyers and accountants whoaccused, the IRS is definitely a grim view of those who are strategies to promote illegal to circumvent paying taxes.

The tax code is complex. Money Magazine used to do to study each year, where they would send out the finances of a fictional family, and you ask 10 different accountants to prepare their taxes. All CPA come with different rates of return and only one near the right response. Did that mean the other nine were fictitious customersPrison? Of course not. You would have to pay a little more, but.

As long as you play straight on your taxes, they have nothing to fear. Try something clever, however, and all bets are off.