The IRS is actually testing a new system where they just tell you how much you owe/get, and that’s it unless there’s unreported income and such that needs to be corrected.
Also, the IRS only escalates straight to jail if it’s incredibly obvious you’re intentionally committing tax fraud. If your forms are wrong they just send you a letter to fix it.
I wish more people were aware of this. One year I made a rather significant number entry error and should have owed a couple thousand more than I paid. I got a fairly routine letter later in the year asking me to correct the error. I had a little mental panic, reran the numbers, and filed an amended return. There was no pressure, you always have payment options, and they send you back another letter confirming the acceptance of the amended file. I understand that many people would have significant problems paying extra unexpectedly but unless you are actively committing fraud you are not an immediate priority for the IRS.
And if you can’t afford to pay it all in one go, they will work with you to set up a payment plan. If you can pay it off in 6 months it’s basically a non-issue.
The IRS is actually testing a new system where they just tell you how much you owe/get, and that’s it unless there’s unreported income and such that needs to be corrected.
Also, the IRS only escalates straight to jail if it’s incredibly obvious you’re intentionally committing tax fraud. If your forms are wrong they just send you a letter to fix it.
I wish more people were aware of this. One year I made a rather significant number entry error and should have owed a couple thousand more than I paid. I got a fairly routine letter later in the year asking me to correct the error. I had a little mental panic, reran the numbers, and filed an amended return. There was no pressure, you always have payment options, and they send you back another letter confirming the acceptance of the amended file. I understand that many people would have significant problems paying extra unexpectedly but unless you are actively committing fraud you are not an immediate priority for the IRS.
And if you can’t afford to pay it all in one go, they will work with you to set up a payment plan. If you can pay it off in 6 months it’s basically a non-issue.