The question I often get from business owners or people with tax problems is “Can I go to jail if I don't file or pay my taxes?”

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And the answer is...probably not.

But...you can go to jail if you intentionally break the law, omit income, and commit tax fraud or tax evasion.

While you’ve probably heard about celebrities going to jail for not paying their taxes (like Wesley Snipe, Nicholas Cage, or Al Capone).

The truth is that not paying your taxes actually isn’t a federal crime...sometimes.

Knowingly declining to file a tax return, or refusal to pay what is owed after filing a return, can be a criminal violation of the law commonly referred to as "tax evasion."

Now, the IRS doesn’t really want to put people in jail but it will get the FBI and other agencies involved if it suspects that a taxpayer is gaming the system, purposefully evading taxes, or operating an illegal cash business that in and of itself does not pay taxes (or track its income at all!).

So if you’re unsure if you are doing things legally...remember these three things.

Report ALL of your income on your tax returns and take NORMAL business deductions
File your tax returns, on time, every year, even if you can’t pay the tax
If you develop big tax debts, call a CPA or tax attorney to help you make a payment plan with the IRS

Do these things, and you won’t go to jail from IRS problems.