2 ms·
> No one goes to jail for underreporting a small amount of income, like a weekend garage sale. Almost no one goes to jail for tax-related issues, period. Only
by mattm 6y ago
> No one goes to jail for underreporting a small amount of income, like a weekend garage sale.
Almost no one goes to jail for tax-related issues, period. Only about 600 people are convicted of tax fraud per year and they usually do so because of amounts of more than $100,000.[1] If the IRS finds discrepancies, they'll work with the taxpayer to pay the appropriate penalties. You have to be doing something particularly egregious to end up going to prison.
The IRS is not the big, bad bully that it is usually portrayed as.
[1] https://www.ussc.gov/sites/default/files/pdf/research-and-publications/quick-facts/Tax_Fraud_FY17.pdf https://www.ussc.gov/sites/default/files/pdf/research-and-pu...
- gwbas1c 6y agoIt's because taxes are so darn confusing, that it's assumed honest mistakes are just that. Why are taxes confusing? To keep Turbotax in business!
- ad404b8a372f2b9 6y agoOut of curiosity, what would be the right amount of tax fraud for the expected value to be positive?