Posted: Sarah Nieschalk | June 8, 2016

News

The Dangers of Dodging The IRS

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If there was a way for you to avoid filing and paying taxes or interacting with the IRS, it's fair to say you'd want to know all about it. Unfortunately, though, there are few instances when you're permitted to simply take a pass on your tax duties. Nevertheless, there are thousands of people each year who attempt to undermine, evade or ignore their IRS responsibilities.

If you reach a point when you think that this strategy makes more sense than reporting to the IRS or responding to their notices, you'll only be setting yourself up for failure. There is little you can skate on when it comes to handling your taxes. Rest assured, the IRS will catch up with you and the consequences you face can be quite severe. Consider some examples provided by wayward taxpayers that you should avoid emulating:

The Non-Filer

There are typically two types of people who fail to file their returns: those who are negligent and those attempting to bypass a tax bill. These individuals either don't realize or don't care how serious it can be to skip their filing duties. Regardless of their intentions, anyone who is required to file and doesn't faces penalties and possible time in jail. Worst case scenario, non-filers can be sentenced to a year in prison for each year they're missing.

The Payment Evader

Some people don't mind filing taxes, but have no intention of paying when a tax bill is due. Despite the fact that the IRS will send a barrage of notices when a balance is delinquent, a payment evader will choose to ignore the steadily-growing balance (any tax debt is quickly inflated by penalties and interest). Anyone attempting to skirt a delinquent tax bill faces aggressive IRS collections, with tactics including bank levies and wage garnishments.

The Escape Artist

For some, tax problems become so overwhelming they're forced to physically relocate in order to avoid detection. In previous years, this practice had a marginal success rate, as the IRS couldn't always track down every tax avoider. These days, the IRS is actually required to enlist private collectors when delinquent taxpayers fall off the radar for more than a year. That makes tax escapes far more likely to meet an end that entails a volatile and expensive IRS confrontation. Depending on the list of infractions involved, tax avoidance can result in both serious fines and criminal prosecution.

Reshaping Tax Habits

No matter what kind of avoidance scheme has been perpetrated, there's always a second chance. Anyone who has chosen the path of greatest tax resistance can take some comfort in the fact that the IRS is willing to be reasonable; far more reasonable if the issues are addressed and any balance paid. Tax resolution companies handle just these types of IRS concerns, and specialize in determining affordable solutions. Virtually any tax problem can be resolved, so long as it's done in a formal, legal manner. This certainly beats the alternative: a life on the run from the IRS, one rife with anxiety and financial ruin.

 

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Written by Sarah Nieschalk

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