Best Debt Companys

163 Companies 5,416 Real Customer Reviews

Doing Time for an IRS Infraction

Posted By:  |  December 1, 2015  |  0 Comment(s)

irs infraction

There’s an excellent chance that you know the basics of right and wrong when it comes to your taxes. What you might not be as familiar with is what misadventures can lead to more than just IRS penalties and interest. Some tax violations can end with time behind bars.

Simply ignoring IRS notices isn’t enough to call for your arrest. Likewise with failure to pay a tax debt; while ill-advised and potentially costly, there is no debtor’s prison here in the United States. There are, however, a few scenarios that will provoke the IRS to take harsh action. Some of the strictest consequences can include years in prison.

Failing to File

Many taxpayers, from time to time, miss a filing deadline. If you make it a habit, though, the IRS may begin to think that you’re intentionally neglecting your responsibility. Put another way, you can be investigated for tax evasion. If prosecuted and convicted, you can face one year in prison for each year that you’re missing a tax return.

Unreported Income

Another form of tax evasion occurs when you engage in under-the-table work. For example, if your employer pays you without withholding taxes as a way for you to both sidestep IRS reporting, the consequences can be serious. And this concept applies to any side work or part-time endeavor. Remember, by law, you are required to report income earned from any activity. No matter how you earn your money, fail to report it at your own risk.

Unpaid Payroll Taxes

Alternatively, if you own your own business, you may be the one responsible for withholding and paying taxes for your employees. If so, you have to proceed cautiously, indeed. Failing to pay taxes from workers’ wages can lead to stiff penalties. If you withhold taxes but don’t pay them, you can face criminal charges. In fact, the IRS can prosecute you for stealing from your employees. In the event that you’re just starting out with a new business or fear you’ve been making serious errors, don’t waste any time in contacting a licensed tax professional.


There are a few offenses for which the IRS has zero tolerance. Fraud, in its many forms, is perhaps the best example of this. In recent years, a marked increase in tax scams has resulted in a crackdown by the IRS for participating offenders. Tax fraud cases are handled swiftly and harshly. Depending on the severity of the infraction, fraudsters can receive several years in prison and staggering fines.

Get a Second Opinion

There’s a chance that you’re unclear if something that you’ve done – or haven’t done – warrants legitimate concern over the potential for incarceration. When in doubt, reach out to an experienced tax professional. At the very least, you will likely know where you stand in a matter of minutes, and the consultation will come at no cost to you. If you do have reason to worry, you’ll be provided a suggested course of action to handle the problem. Either way, you can lay to rest your fears of jail time at the hands of the IRS.


<–Back to Debt Blog                 Next Post: Is a Tax Lien Lurking On Your Credit History? –>


  • How important is it to you for a debt consolidation company to offer financial education resources?
  • Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
  • Negotiates with your creditors on your behalf.
  • Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
  • Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
  • Combines all your debts and creditors into one monthly payment.
  • Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
  • You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
  • Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
  • Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
  • Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
  • Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
  • Borrowers can receive funds from their loan within only a few days.

Recently Reviewed:

Trending Blog Post:

Want us to review a company?

If there is a debt company that you don't see on our site, and would like us to review, please contact us.

Real Reviews (yes they’re real)

With so many debt relief companies out there, and a lack of sites willing to bring you the HONEST breakdowns of each company, what source can you turn to for the real information you can trust?

We are dedicated to bringing the truth out, and rank debt relief companies as they should be. Through our investigation, and experience with each company, we rank each company, and bring you our honest, unbiased opinion. We also include authentic user reviews by past customers of each company that are moderated and verified.

Like many sites, we are compensated through affiliate relationships with each company we review, however all of our rankings are based on our 11-Point Ranking Criteria.

All reviews are subject to moderation and approval. Any reviews that may resemble false information, or competitors of another company will need to be verified by our staff before being approved and published. We reserve the right to approve or deny any reviews left on this site.