Categories: General Tax Terms
Willful Failure to Pay
The term refers to a taxpayer’s intentional failure to pay taxes owed to the government by the due date, despite having the ability to do so. This action is considered a violation of tax laws and can lead to severe penalties, including fines and interest accruals.
For example, if an individual has sufficient funds in their bank account to cover their tax liability but consciously decides not to pay, this would be classified as willful failure to pay. The IRS may pursue collection actions against the taxpayer, which can include liens, levies, and potential criminal charges depending on the severity of the offense.
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