Legal Question in Tax Law in Pennsylvania

Re: federal tax law

The answer is "yes and no." If there is evidence of fraud, evasion, or intentional failure to file a return or make payment, they can turn it over to the Criminal Investigation Division of the IRS, and ultimately to the U.S. Attorney for criminal prosecution. HOWEVER, this is extremely rare, especially where it's simply a matter of "back taxes."

Ordinarily, the IRS will send you a number of notices attempting to collect the debt. When it goes far enough that it looks like you're never going to pay it, they'll either file a lien, or they'll give notice to intent to levy on property, which means that they can seize and sell your assets to satisfy the debt.

One thing that's important to remember is that even if you think that you have "no assets," the IRS is not limited to seizing cash/bank accounts and real estate - they can take almost ANYTHING that you own to satisfy the debt. And not only that, they can keep levying on property for years, which means that if you DO acquire property in the future, that property may be seized.

Your best bet at this point is to retain legal counsel to deal with them in order to avoid further problems. There is a mechanism which can be used in a case like yours which involves (in IRS lingo) a "doubt as to collectibility" of the debt, i.e., that you are unemployed, have little or no assets, and are unlikely to be able to pay. This is called an "Offer in Compromise," and if it's accepted, then you may be entirely off the hook.

If you would like to discuss your tax issues further, please contact our office for a free, confidential consultation. We would be happy to outline your options for you and assist you in your tax case. Thank you.

Marc D. Daffner, Esq.

Re: federal tax law

No. The failure to pay taxes is usually not criminal. In law there are always exceptions, but this should not be a concern for you. The first thing you should do is contact a tax attorney. The tax attorney will review the documents and determine into what stage the IRS collection has progressed. By hiring a tax attorney the IRS will speak with the attorney and not you. This will protect your rights.

I have more information on the tax collection process at:

www.taxesq.com

I hope this helps!

Ron Cappuccio