If you think you can get away with avoiding taxes indefinitely, you are dead wrong. Plenty of people have tried this tactic, and plenty have failed. Sometimes, the effects of unpaid taxes can be shocking, as evidenced by the stories outlined below:
Deceptive IRS Agents
Most IRS agents are just trying to do their job, but some cheat ordinary taxpayers through horrific measures. For example, in 2009, an IRS agent was indicted in an infuriating scheme in which he recommended that delinquent taxpayers refinance their mortgages. The catch? The agent had a personal interest in the suggested company. He was ultimately charged with “acts affecting a personal financial interest.”
California CPA Melody Thornton tells Reuters that she actually talked a young woman off a ledge — all because of taxes. The woman was willing to end her life due to a mistake she’d made while completing withholdings. This situation is more common than you might suspect; the IRS has actually been sued for wrongful death due to the emotional distress caused by raids and other collection actions. IRS issues can serve as a powerful trigger for those with pre-existing mental health problems.
A Funeral And Back Taxes
A notable Tax Court decision resulted in a widow owing $15,000 in unpaid federal income taxes and related penalties due to the accidental incorporation of her husband’s company. The couple’s son (a minor at the time) changed the business from a sole proprietorship to a corporation, but his father neglected to fix the mistake. His wife was ultimately hit with the bill. The moral of the story? Always work with a tax expert. The IRS doesn’t particularly care about good intentions or unintended errors.
Your tax situation may be nerve-wracking, but it doesn’t need to become one of the horrors outlined above. Work with the Highland Tax Group to achieve a desirable outcome.