| What common misconceptions about paying taxes exist? Check all that apply. | |
|---|---|
| A person who is unable to pay taxes does not have to pay them. | |
| A person who chooses not to pay taxes does not have to pay them. | |
| Simply forgetting to file taxes will not result in jail time. | |
| Making a mistake on your taxes will likely result in a fine. | |
| Depending on a person’s salary, he or she may be exempt from taxes. |
What common misconceptions about paying taxes exist?
- A person who is unable to pay taxes does not have to pay them.
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- Explanation: Even if you are unable to pay the taxes you owe, you still have to file your tax return. The unpaid amount typically accumulates and may be carried over to the following year, and penalties and interest may be added. However, you can apply for payment plans or relief options to address the unpaid taxes.
- A person who chooses not to pay taxes does not have to pay them.
- Explanation: This is incorrect. Taxes are an obligation, not a choice. All citizens who are legally required to pay taxes must do so. Choosing not to pay taxes is illegal and can lead to significant penalties, interest, and even criminal charges.
- Simply forgetting to file taxes will not result in jail time.
- Explanation: If you forget to file your taxes, it is usually seen as a mistake rather than tax evasion, and the IRS may impose fines or penalties. However, jail time is generally not a consequence for forgetting to file. In extreme cases of willful tax evasion or fraudulent intent, criminal charges could apply.
