Why Cheating on Your Taxes Won't Work

Let’s face it: cheating on your taxes can be incredibly tempting.

Perhaps you fail to list that money you made from driving an Uber on the side. Or, maybe you neglect to include the profit you made from selling your home.   

Whatever the case may be, you might think you can get away with fibbing to the IRS, but it very rarely works. Here’s why!

The IRS Knows

First things first, the IRS makes it its business to know exactly what you’re up to.

Almost every form you receive related to your finances goes not just to you, but also to the IRS as well.

So, when you get a W-2, a 1099, or any other information return, rest assured that the IRS gets one too. They’ll use what they learn from these returns to ensure you’re reporting your income and paying your taxes honestly.

They’ll Come for You!

So, what happens when you do lie on your taxes? Whether you tried to cheat or it was a legitimate mistake, in most cases, the IRS will just send you a notice in the mail asking you to pay what’s actually owed. They’ll also tack on some penalties and fees in most instances too- another reason why cheating isn’t worthwhile.

In more serious situations, such as with deliberate and prolonged fraud, they could press charges against you. They’re also likely to go back, look at past returns, and bill you for several years back.

If all of that sounds scary, it is! Don’t let it happen to you!

Do the Right Thing

To stay on the right side of the tax law, pay your taxes. Pay them on time, and pay them accurately.

Of course, in order to do that, you have to file them accurately first, and that’s where a good, professional accountant comes in handy.

With the right help, you’ll never cheat on your taxes again, either purposefully or accidentally, and you’ll still manage to save!

How to Pay Your Taxes

Finding out that you owe money to the IRS can be both intimidating and overwhelming. However, if it turns out that you have tax liability, don’t panic. You have many options for getting your taxes taken care of.   

Paying Online

One of the simplest options, one that many people prefer in this day and age, is paying their taxes online. If you go to the official IRS website, you will find many safe payment processor options that will allow you to either pay your tax debt in full or to pay whatever you can at the given moment. If you prefer, you can also call the official IRS number and make your payment with the help of a live IRS agent.

Checks or Money Orders

It is also acceptable to pay by check or money order if that’s what you prefer. Just make your payment out to the United States Treasury and then send it in, along with any helpful forms or copies of documentation that you might have.

Loans

Regardless of how you pay, you may find that you can’t pay all that you owe, at least not easily. If this is your situation, you may want to think about taking out a loan to make your tax payment.

Whether it’s borrowing money from family or friends, taking out a home equity loan, or even using your credit card, this is often a smart step since IRS interest often compounds daily, on top of late payment penalties.

Other options include requesting an extension or a payment arrangement with the IRS directly.

Unfortunately, taxes do have to be paid, one way or another. Work with the IRS and your financial advisor to find the payment options and schedule that work best for you and your situation.