What happens if you don't pay income taxes?

Answer 1

This is a great question that requires more than a simple answer. The basic answer is if you don't pay your taxes the IRS will either levy your wages, your bank account or they will put a federal tax lien against your social security number. Sometimes taxpayers confuse non-payment of taxes with non-filing of their tax returns.

• A taxpayer can file their tax return and then not pay the taxes they owe. If this is the case then everything mentioned above would apply.
• There are situations where a taxpayer may choose to not file a tax return. If no tax return is filed then there is nothing to pay, right? Wrong! The IRS has a record of the taxpayers earnings and knows the taxpayers owes taxes even though the taxpayer did not file a tax return.
• If a taxpayer does not pay their taxes they face strong collection activities by the IRS.
• If a taxpayer does not file a tax return this is considered tax evasion and the IRS can put you in jail.
• Failing to report non-trackable income such as tips can result in severe penalties.
• If you underreport income the penalties are severe.
• You will find the answer to all of your questions if you seek professional advice.