Think tax crimes only result in a monetary penalty? That after paying off a fine the accused is free to continue on as before? Think again. A recent case involving a famous rapper draws attention to the fact that tax crimes can result in imprisonment.
The case, as noted in a recent piece by the Rolling Stone, involves DMX. The rapper was made famous for his hit “X Gon’ Give it to Ya” in 2003. Apparently X forgot to give it to the IRS, and the IRS decided to give it to him instead. The musician was accused of failing to pay taxes and obstructing the administration of IRS laws. The charges, 14 total, could result in over 40 years of prison time.
The problem appears to stem at least partially from the allegation that the celebrity failed to file tax returns.
How serious is a failure to file taxes?
This question is so common that even Nerd Wallet recently dug into the extent of penalties that can come with a failure to file taxes. The verdict: the penalties are harsh and a failure to file is pretty serious.
Although the government generally has a time limit that applies to how far back criminal charges can be brought, one is generally not applied for collecting on taxes. Plus, at six years the time limit for criminal charges is pretty liberal. In addition to a long reach for back payment, various penalties can be stacked on top of the late bill. These penalties can include a failure to file and a failure to pay as well as additional interest on top of it all.
What should I do if I am behind in my taxes?
Unfortunately, the problem will not go away on its own. It doesn’t matter if you are a famous musician or your average Joe, eventually the IRS will come knocking on your door to collect due taxes.
As a result, it is wise to attempt to come into compliance before the fees and penalties become unmanageable. In these situations, it is a good idea to seek legal counsel. An experienced failure to file attorney can review your situation and help you determine the best way to come into compliance.
You can speak with a Cleveland or Chicago based tax attorney from the office of Robert J. Fedor, Esq., L.L.C. about your legal options in these matters.
