Can the IRS Put Me in Jail?

On: December 14, 2018

It would rather not. You cannot make any money to pay them taxes with when you are in jail. The short answer is, however, yes. They cannot place you in jail for just not paying your taxes. Negligence, ignorance and stupidity may not be an excuse for not paying your taxes, but they are also not reasons for putting you in jail. You must show a criminal intent, such as criminal fraud, to have the IRS try to put you in jail. The IRS branch in charge of this type of criminal prosecution is, in fact, called “The Criminal Fraud Investigation Unit.” From the IRS web site: “The Internal Revenue Service Criminal Investigation Division conducts criminal investigations regarding alleged violations of the Internal Revenue Code, the Bank Secrecy Act and various money laundering statutes. The findings of these investigations are referred to the Department of Justice for recommended prosecution”. (This means that the IRS cannot just put you in jail. It refers cases to the US Department of Justice to be prosecuted like any other crime with criminal punishment.)_ “The ultimate goal of an IRS Criminal Investigation prosecution recommendation is to obtain a conviction – either by a guilty verdict or plea. Approximately 3,000 criminal prosecutions per year provide a deterrent effect and signals to our compliant taxpayers that fraud will not be tolerated.” (Note the word “fraud”.) The IRS is not a police force or a judge. It is a collection agency. It does not want to put you in jail. It has, however, been given hefty powers to help it at its job. Remember: Al Capone did not go to jail for murder and mayhem, he went to jail for tax evasion.