On March 19, 2009, Keith Kuchenbecker, of Neenah, Wisconsin, was sentenced to 21 months in prison and ordered to pay $288,546 in restitution to the IRS. Kuchenbecker pleaded guilty to failing to pay over to the IRS approximately $197,000 in payroll taxes that had been withheld from the wages of the employees of his business, Keith Kuchenbecker Construction, Inc. According to documents filed in federal court, Kuchenbecker was responsible for paying payroll taxes that had been withheld from the wages of the employees of the business.
On July 2, 2009, Scott Alexander, of Merriam, Kan., was sentenced to one year and a day in federal prison for mortgage fraud. Alexander pleaded guilty in January to one count of conspiracy to commit wire fraud and money laundering. In his plea he admitted that in 2003 and 2004 he conspired with co-defendant, Wildor Washington, Jr., and others to obtain mortgage loans by fraudulent means including submitting inflated property appraisals to lenders.
When I counsel people dealing with IRS problems, I usually end up asking the one big nagging question ....."Why did you wait so long to do something about this?" Here's the usual reply: "I thought I would end up going to jail."Let's go ahead and get something straight about the IRS and prison time...
IRS Spokesman David Stell declared that the agency shall no longer release "debt indicators" of taxpayers to tax preparation services. Debt indicators released by the IRS are those that indicate whether the taxpayer will receive any tax refund, and if that refund would be offset by payment of delinquent taxes, student loans or child support.
I don't know your financial situation personally, but I would venture a guess that if you have problems paying the IRS...that you may have credit card debt problems as well. So I certainly don't mean to throw "fuel on the fire" of a debt problem by making the following suggestion, but I'll throw it out there as an option and only you'll know if it is a legitimate option for you.
On December 18, 2009, in Seattle, Wash., Michelle L. Bielaski, of Bellevue, Washington, was sentenced to 15 months in prison, two years of supervised release, and ordered to pay $2,478,002 in restitution. Bielaski pleaded guilty in June 2009, admitting that as secretary and treasurer of Falcon Construction, Inc., she failed to send to the Internal Revenue Service taxes that the company withheld from employee paychecks.
On October 2, 2009, in Baltimore, Md., Gino Jones was sentenced to 15 months in prison and one year of supervised release for failing to file tax returns for 2001 and 2002. According to court documents, Jones operated a used car business under different names. He purchased cars at auctions, refurbished and then resold them on eBay.
Thankfully, the IRS has a solution for this scenario. It's called the "Innocent Spouse Doctrine". The IRS website states that: "By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). You must meet all of the following conditions to qualify for innocent spouse relief: