A recent report shows that 47 percent of U.S. households pay no federal income taxes. The Tax Policy Center found that the percent of non-paying households had risen from 38 percent in 2007 to 47 percent this year.
Another interesting factoid is that households making more than $366,400 paid about 73 percent of the income taxes collected by the federal government.
This is not the image often presented in Washington when legislators complain about tax fairness for the middle class. White House adviser Paul Volcker appeared to call for higher taxes yesterday to deal with the rising deficit and Obama officials have been suggesting that the wealthy should face higher taxes to establish tax equity.
For the full story, click here.
After reviewing AY’s comment I need to make a correction. I previously stated that The first rule is, do not attempt to defraud the United States Tax Code by filing a bogus return. The second rule is don’t break the first.
The first rule is always file a return followed by the second do not attempt to defraud the United States Tax Code by filing a bogus return. And the third rule is don’t break rule 1 or 2.
Incidentally AY, it was your first comment that got me going. I did not read what ever BVM”S argument was To not pay, So don’t include me with that of his position or your’s.
The only part of your comment I am referencing is,
“It is only against the law to not file”
There’s a whole bunch more do’s and don’t but thats where it all starts.
Think Neo and the agent the first time they met.
No AY, it just pisses me off that someone wants to fear monger people with the threat of going to jail for failure to pay. Thats the real Gestapo.
The IRS has many ways to satisfy a debt. Why do you think there are some many commercials that start off this way.
Is the IRS calling your place of employment, have your wages been garnished, has your checking account recently been frozen?
Call the law offices of They Tax ya We’ll fix ya for a free consultation. Our staff is made up of retired IRS angents that are here to help you, call now.
Bdaman,
Did you find that out the hard way?
At the end of the day the IRS just wants the money. They don’t want to lock up tax payers who are willing to work with them. Its the crazies, the one you guys are quoting that they go after.
Well thank you goneville, this was my whole point. The first rule is, do not attempt to defraud the United States Tax Code by filing a bogus return. The second rule is don’t break the first.
Again if you did not intentionally try to defraud the federal government they will not put you in jail for failure to pay.
Each individuals circumstance is unique, the last thing the IRS wants to do is put people in jail who may have fallen behind at no fault of their own.
I find it hard to believe that people with a legal background on this thread have a hard time grasping that. The IRS is not the Gestapo, they may have been at one time, I don’t know.
The cases that are cited as “proof” they will put you in jail for FAILURE TO PAY are cases where the guilty were caught first defrauding the Federal Government. Thats how the IRS works. First they determine if you intentionally defrauded or TRIED to defraud the tax code. As we’ve seen in the Hemsley case there is no protection under the shield of accountants. You the individual are 100% responsible for what is turned into the IRS regardless who filled out your return.
That made me want a Burrito.
And lest we forget, Willie’s stint pimping for Taco Bell to pay off The Man.
[youtube=http://www.youtube.com/watch?v=cUvdvxfOZio&hl=en_US&fs=1&]
Hey, thanks for the kind words from you guys.
This is a great blog, I’m glad to be here.
And of course the ones who buy it.
“Bdaman 1, April 11, 2010 at 8:07 am
One thing about Willie Nelson is he never went to prison”
*****************************************
No and I never said he did. But he came awfully close.
What kept Willie out of jail was the fact he had a good alibi, one backed up by a legal suit. His accounting firm, Price Waterhouse and Cooper had used the wrong tax shelters and he successfully sued the firm for a large sum (60 some million I heard). He won the suit against PWC, and settled his taxes with the Fed for 17 Million, (about half what he owed) and cut an album, dedicating all proceeds to the IRS.
So Willie did some tap dancing to keep out of jail. So don’t kid yourself. If you’re defiant, they have no problem turning the key. What saved Willy was his cooperativeness and his ability to come up with enough money to satisfy the debt.
At the end of the day the IRS just wants the money. They don’t want to lock up tax payers who are willing to work with them. Its the crazies, the one you guys are quoting that they go after.
The ones selling bogus tax advice, or what Sarah Palin would call the “Snakey Oily fake Taxy stuff”.
You heard of dead people voting? Now they are getting tax returns.
Tax Returns of the Living Dead
26 tax preparers charged with ID theft and other scams
By ALICE MCQUILLAN
Dead people were claiming tax refunds and the children of strangers were listed as dependents.
Those were among the bold scams that 26 Bronx and Manhattan tax preparers were allegedly using to claim the bulk of about $95 million in refunds since 2001, prosecutors said Thursday.
http://www.nbcnewyork.com/news/local-beat/Tax-Returns-of-the-Living-Dead-90266732.html
Each individuals circumstance is unique, the last thing the IRS wants to do is put people in jail who may have fallen behind at no fault of their own.
In some cases the IRS may determine your federal tax debt is not collectible. If the IRS decides your tax debt is not collectible, it does not eliminate the back taxes or federal tax liability. Declaring debt “not collectible” means the Internal Revenue Service (IRS) has determined that paying your tax debt would cause “severe economic hardship” for you or your family.
The IRS will review your financial situation periodically to determine if you are able to pay your back taxes and unfortunately, interest and penalties will continue to accrue. This tax settlement option is not ideal, but it may give you a little time to collect the funds to pay your federal tax debt and stop the IRS debt collection process for a short while.
http://www.taxlawhome.com/Tax/IRS-Settlement
The proof is in the pudding
100,000 civilian federal employees owe the IRS $962 million in back taxes and are not in jail.
* Executive Office of the President (includes the White House): 50 employees owe $812,917;
I guess President Obama needs to remind these people they can go to jail.
Bad man can have the last word(s). No one here, except a few other trolls, take any of that stuff seriously. Just tell the judge that you got your legal advice from an anonymous troll on the internet.
He defrauded the Government. Again if your the average Joe and you did everything right but do not have the money to pay they will not put you in jail.
employment taxes for his companies.
He should be in jail. He deducted monies from employees paychecks and did not forward it to the Federal Government.
Pay your taxes, badman.
Taking tax advice from a troll: priceless.
Failure to Pay Employment Taxes = Jail Time
Author: Norman McKellar
Ri Contractor Gets 30 Months For Tax Violations | WJTV.com
PROVIDENCE, R.I. (AP) A Rhode Island contractor has been sentenced to 30 months in federal prison for failing to pay $2.1 million in employment taxes for his companies.
Steven Allard of Scituate was sentenced in federal court on Wednesday following his guilty pleas to felony counts of tax evasion and bankruptcy fraud.
Prosecutors say Allard directed income generated from one of his businesses, Builder Resources Inc.-Massachusetts, be transferred to three other businesses, Builders Resources Inc.-Delaware, Quad and Edgewood. Authorities say the 47-year-old Allard failed to pay the Internal Revenue Service the employment taxes and instead diverted the funds to himself and his wife, some of which they used to buy luxury cars.
Allard apologized in court. He is scheduled to report to federal prison on March 17.
http://helpingclients.com/blog/?p=882
In some cases the IRS may determine your federal tax debt is not collectible. If the IRS decides your tax debt is not collectible, it does not eliminate the back taxes or federal tax liability. Declaring debt “not collectible” means the Internal Revenue Service (IRS) has determined that paying your tax debt would cause “severe economic hardship” for you or your family.
The IRS will review your financial situation periodically to determine if you are able to pay your back taxes and unfortunately, interest and penalties will continue to accrue. This tax settlement option is not ideal, but it may give you a little time to collect the funds to pay your federal tax debt and stop the IRS debt collection process for a short while.
http://www.taxlawhome.com/Tax/IRS-Settlement
Again if you did not intentionally try to defraud the federal government they will not put you in jail for failure to pay.
Each individuals circumstance is unique, the last thing the IRS wants to do is put people in jail who may have fallen behind at no fault of their own.