I am trying to find out if my boss is lying to me. I work for a company that is in charge of a franchise of small restaurants. I work for the owner. He pays taxes 4 times a year. This last payment he is late on and is trying to tell me he is going to jail for not paying. I do not think this is right. He has never been late before and I know the IRS will work with him on a payment plan. Is he just trying to scare us all and make us feel bad or is there a chance he could really go to jail for this? Any help would be great! Thank you!

One can go to jail for tax evasion, but not for just being late.

Hello e:

Or one can go to jail for other things, and then lie about the reason he's going.

excon

Would it be tax evasion if he is just late on payments?

No, tax evasion is a willful mistatement of earnings to reduce tax liability.

It is MOST unlikely that he is subject to a jail term for filing his Employer Taxes (Form 941) late. If that was the case, a fair number of my clients would be locked up.

So if he is late will the IRS work with him on payment arrangements?

Or they attach a business account or other asset.

Attaching business assets or garnishing financial accounts are actions of last resort.

The IRS gets NOTHING by locking people up. By working with people on payment plans, they GET THE MONEY!