What are the consequences for failing to report income on taxes?

In Pennsylvania, failing to report income on taxes can have serious consequences. Depending on the severity of the failure to report, you could face severe fines, imprisonment, or both. If you make a small mistake in reporting your income, such as entering your total income incorrectly, you could be subject to a penalty of 20 percent of the difference between the correct amount of tax and the amount you paid. Additionally, the IRS could charge interest on the underpaid amount. If your unreported income amount is deemed to be significantly larger, you may be subject to criminal prosecution for tax evasion. Tax evasion is a type of white-collar crime and the fines and penalties for the offense can be quite severe. You may be required to pay back the taxes owed, plus interest and penalties, and could even face jail time if you are convicted of a tax evasion charge. It is important to note that even if you fail to report all of your income, the Internal Revenue Service has up to three years to conduct an audit, depending on the nature of the offense. To avoid these consequences, you should always accurately report your income and pay the taxes that are due.

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What are the consequences for failing to report income on taxes?

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