Could you go to jail if you don't pay corporate taxes?

Answer 1

YES! The government will eventually come after you for tax evasion, if you are living in the US. In Canada, there is no "tax evaders jail", but they would likely take some of your paycheck, or refuse to refund any other taxes until the full amount is paid.

AnswerThere are currently many tens of thousands of people in jail (or on parole/probation/special program) for tax-related charges.

The government's first interest would be getting restitution (i.e. paid in full), including interest and penalties. Assets can be seized, as well as current profits. Anyone having a business connection will receive notices to surrender "Accounts Payable" to the Government. This can be legally fought, but non-filers snubbing their noses at the system will not get much mercy. If the debtor agrees to pay up and remain current, he can avoid criminal prosecution and jail.

Going to jail is possible, but generally reserved for those whose failure to pay is intentional. The act of failing to file and pay is criminal. It is theft from the government and your fellow citizens. Just ask Leona Helmsley, a very wealthy and powerful person, who had accountants to do her bidding. Despite her famous quote that "...only the little people pay taxes...", she paid AND went to jail. And while not all these others went to jail, some did and all paid large amounts of back taxes and penalties. Note that they cover a broad range of people...all very wealthy, able to afford the best of defenses by the most competent of teams of tax law experts AND had "ins" with the system, even up to and including a VICE PRESIDENT (who was also a lawyer, and one may suspect has all the inside info and political favors to call). They were all subject to tax of many types and were found to either failed to pay, or even just not pay enough. Actor Wesley Snipes, Country singer Willie Nelson, Baseball star Darryl Strawberry, Former Vice President Spiro Agnew, "Survivor" Richard Hatch (released from jail this week I believe), Mobster Al Capone (thats right...the most wanted man, and one of the richest and most powerful men of his time, actually was never found guilty and jailed for any of those acts, but spent his life in jail when prosecuted for tax evasion), Tennis star Boris Becker (who wasn't even a US citizen), "Hollywood Madam" Heidi Fleiss to name a few.

Many people rely on governments for programs and services : Social Security, Medicare, child benefits, and others. Add to that, if any of your earnings ever have withholding (payroll or interest), you can't get them back without filing.

While there are many people who have done some time for tax evasion, the vast majority of those who refuse to comply are never prosecuted criminally.

Answer 2

Fraud pierces the Corporate veil and officer may well hav personal liability.

If it has to do with payroll taxes or sales taxes...even that isn't needed...those are trust funds...taxes for the government from the people that paid them that the business has in trust to pay over. The governments have absolutely no flex on that, and have huge power to seize assets of any officer or even "responsible person" in the Corporation.

Answer 3

Basically your stealing from the government 9and all members of society), and that's a bad idea and criminally against the law. Many opeople have and do go to jail, for long periods, for tax evasion. There is an entire seperate, indpendent court system - Tax Court - just to hear these cases.

District court properly sentenced film producer/actor to 36 months prison time for his Code Sec. 7203 offenses in accord with U.S.S.G. §2T1.1. Taxpayer's arguments against §2T1.1, including that Code Sec. 7203 misdemeanor offense was one for which no first-time offender should be awarded jail time and that §2T1.1 conflicted with 28 USCS 994(j) , misapprehended nature of U.S.S.G. and essentially just reflected unsuccessful disagreements with Congress's and Sentencing Commission's assessment of major tax losses as serious. Alternative arguments that court wrongly enhanced taxpayer's sentence for obstruction of justice were also unavailing when considering evidence that he instructed or threatened one of his employees to not respond to grand jury subpoena that was delivered by IRS agent and sought information relating to charged offenses. And notwithstanding his belief that he should have been given nothing more than probation, taxpayer's prison sentence was neither procedurally nor substantively unreasonable where it was within advisory U.S.S.G. range and was determined only after extensive sentencing hearing and consideration of taxpayer's allocution and all relevant 18 USCS 3553 factors. Fact that court gave "somewhat longer" discussion of deterrence factor as opposed to other factors didn't show any abuse of discretion and just reflected U.S.S.G.'s emphasis on deterrence in criminal tax context. (U.S. v. Snipes, CA 11, 106 AFTR 2d 2010-5256 )

Answer 4

Probably none, if you contact the IRS and or State, tell them your story of woe, and get a good tax person who won't charge you some excessive fee for poor service. Got ill personally, found an excellent lady that had her own tax business and actually did fine. Illness caused me to get a few years behind with no filing on our part and it all worked out fine. Remember you can get a 3 or 4 month extension on taxes every year from the April 15th due date.

Go to the IRS gov website and use the search box for Help Yourself by Filing Past-Due

Tax Returns

What should you do?

Regardless of your reason for not filing, file your tax return as soon as possible. You can contact a tax professional or the IRS for help with filing delinquent returns.

If you are unable to fully pay any tax due on the late returns, do not let this prevent you from filing as payment options may be available. For more details, ask your tax professional or an IRS representative.

Filing tax returns and paying the correct amount of tax is good citizenship. Conscientiously discharging this duty contributes to our nation's well being and provides peace of mind. And failing to file returns can jeopardize a family's financial security and future.

For more information on how to file a tax return for a prior year, visit the IRS Web site at the IRS gov website or you can call the IRS Tax Help Line at 1-800-829-1040 or visit your local IRS office.

Answer 5

Yes, many gangsters in the 1950 went to jail for tax evasion because the authorities could not catch them doing anything else. John Gatti was one of them.

Answer 6

Most likely.