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So, what does it actually take to get locked up over taxes?
Why Would Someone Go To Jail for Taxes?
In general, people who cantpay their taxesdont go to jail.
In fact, many people in the United States are not even required to pay taxes.
This exception typically applies to people living below the poverty level.
So, no, its not illegal to not pay taxes if you dont owe them.
And if you work with an accountant, youll likely find ways to save money when you file.
These instances are called tax fraud and tax evasion.
Thats the equivalent of a tax evasion of $4 million today.
Wesley Snipes
Perhaps the next most famous case of tax evasion is 90s action star Wesley Snipes.
In modern times, it was the first time many people heard of someone going to jail for taxes.
He served three years in prison, the maximum time permissible for this misdemeanor crime.
Lauryn Hill
Another infamous tax evasion case is that of hip hop singer Lauryn Hill.
The department claims she failed to report $1.8 million in income, according toBBC News.
She ended up spending three months in a minimum security prison and paying $970,000 in taxes.
He had to be made an example of.
Heidi Fleiss
Hollywood Madam Heidi Fleiss had a case much like Al Capones.
She was running a prostitution ring in Los Angeles to serve some of the worlds richest men.
Nelsons ability to avoid jail may prove this point.
What it’s possible for you to Learn
The lesson?
Be careful when you file your tax returns.
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