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A Tax Question That Makes You Wonder, Why Pay?

Let's say Joe Smith "owes," the state and federal governments a combined sum of $5,000. Joe Smith filed his state and federal taxes, but he can only afford to pay $40 a month.

Joe Smith has filed his taxes, and he's paying what he can afford according to his own needs. Joe really has no intention of ever paying off the tax debt, but he does not mind paying $40 a month for the rest of his life if he has to because it's cheaper. If you owe a credit card company money, they can't take your house and they can't take you to prison.

The US government is a corporation and so is your state. Every county, town, city, and village is also a part of USA Inc.

So if our government is a corporation and we "owe," them money, can't we bargain? Ever work in the collections business?

Ever settle a $10,000 debt for $3,000 up front? I haven't but I know people who have. People owe $12,000 on a credit card, make the minimum payments at most, and then settle the debt for $3,500 that can be paid off on a monthly basis without interest.

There's no such thing as debtor's prison...they can't throw you in jail for being in debt, especially if you're shelling over $40 a month! They CAN throw you in jail for failing to file, but they can't repo your body.

So the question is, are we all better off just filing our taxes and making the minimum payments? If you filed, and you're paying what you can afford on a monthly basis they can't throw you in jail for being in "debt."

Anyone a lawyer here?

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