Just what exactly does happen if you get too far behind on your taxes?

December 11, 2013

We have heard of the stories and read headlines about fraud, evasion and being grossly behind on paying federal or state taxes. The penalties for a tax payer who has used up all available excuses can be quite harsh when you take a look at them. When delinquency and fraud is more serious jail time is often inevitable. For example, Freddie Mitchel (former receiver of the Eagles) received a guilty conviction for filing false tax returns in October 2013. He was sentenced, along with many other similar tax frauds, to over 3 years in prison. However, some repercussions are less aggressive. In New York if you are behind over 10,000 in state taxes they will revoke your license, and possibly impose tax liens and take hold of your financial accounts. In California if you miss the due date for paying owed state taxes you will be facing a 5% interest on your debts. But, get this: in states such as California, Massachusetts, and Louisiana even a small balance owed in backed taxes (greater than or equal to 1,000 USD) not only will your license be at stake but your commercial business, hunting/fishing too! States are notably creative with constructing incentives for late payers to pay up.