Can someone explain the difference between tax evasion and failure to pay tax charges?

Thanks for explaining this! So if someone files but then just ignores all the letters from the IRS about payment for years, could that be considered "willful" even if they didn't lie on their return? And does the amount matter? Like if someone owes $5,000 vs $500,000?

Yes, repeatedly ignoring IRS communications while having the ability to pay could potentially be considered willful noncompliance, especially over multiple years. The IRS generally gives people many opportunities to address their tax debt before considering criminal charges. Amount absolutely matters in terms of prosecution priorities. While technically any willful failure to pay can be charged, in reality the IRS focuses its limited criminal investigation resources on high-dollar cases. Someone owing $5,000 might face penalties and interest, but criminal charges would be extremely rare unless there were other aggravating factors like filing false returns or a pattern of severe non-compliance.

Does this actually work for explaining potential criminal exposure though? I'm behind on payments too (working on setting up a plan) and now I'm paranoid after reading about these criminal charges for non-payment.

I'm skeptical about AI tools handling something this sensitive. Couldn't wrong advice here literally lead to criminal charges? Do they have actual tax attorneys reviewing the AI responses?

Yes, it absolutely helps with understanding potential exposure. The system specifically evaluates your payment history, communication records with the IRS, and other factors to determine if your situation has any red flags that might trigger deeper scrutiny. It provides a personalized risk assessment based on your specific circumstances. The AI is built on legal tax precedents and IRS enforcement patterns. It's not just making guesses - it's trained on thousands of actual cases and IRS procedures. And yes, they have tax professionals who develop and monitor the system, though they don't manually review each case unless you opt for their premium service where you can speak with an actual tax professional.

How does this even work? The IRS phone lines are literally impossible to get through. I've tried calling at 7am exactly when they open and still waited 2+ hours only to get disconnected.

This sounds like a scam. There's no way to "skip the line" with the IRS. They're a government agency with set procedures. I bet they just put you on hold like everyone else and charge you for the privilege.

It works using an automated system that continuously dials the IRS using optimal calling patterns and holds your place in line. When they finally connect, the system alerts you and transfers the call directly to you. It's not skipping the line - you're still in the queue, but their system is doing the waiting instead of you having to stay on hold for hours. They use technology that's similar to what congressional offices use to reach government agencies. There's nothing sketchy about it - they just automate the frustrating part of the process. I was suspicious too, but when I got connected to an actual IRS representative while I was making dinner instead of wasting my entire day on hold, I became a believer.

What if you start an installment agreement but then stop making payments? Is that considered willful at that point? Asking because I missed 2 payments during COVID and am worried.

Temporarily missing payments due to financial hardship, especially during extraordinary circumstances like COVID, generally wouldn't rise to the level of criminal willfulness. The IRS recognizes that financial situations change. If you missed payments due to genuine inability to pay, you should contact the IRS to explain your situation and potentially modify your installment agreement. Willfulness typically requires a pattern of deliberate avoidance despite having the ability to pay. The fact that you're concerned and wanting to get back on track shows good faith, which is the opposite of the willful intent required for criminal charges.

Self-employed people do get audited more often because there's more opportunity for under-reporting income or claiming inappropriate deductions. W-2 income is automatically reported to the IRS by employers, but self-employment income has fewer automatic verification systems. That said, the audit rate for everyone has dropped significantly in recent years due to IRS budget constraints.