I love marketers. And the marketers behind IRSTaxSurvivor.com must be geniuses. I can just hear the discussion now, over paper cups of cheaper-than-Starbucks coffee:
Person 1: What’s scarier than IRS? Prison. So what makes for the scariest commercial ever? One that makes you think that the IRS will send you to prison.
Person 2: Brilliant! Who do we know that’s halfway famous who’s been sent to prison for not paying taxes?
Person 1: Wesley Snipes.
Person 2: Snipes is still locked up. Who else you got?
Enter Richard Hatch. Our favorite out of work celebrity now has a gig:
Hatch’s opening line?
Hi, I’m Richard Hatch. The IRS sends people to prison and they’re not just celebrities…
I think celebrity is arguable at this point for Hatch, too, but that’s beside the point.
This commercial is scary, right? It plays on your biggest fears: You’re going to jail, people! Listen to our paid celebrity who has actually been to jail!
Only, er, the reality is that owing a tax debt isn’t quite that exciting. Despite the drama and the testimonial from our dear friend, Richard Hatch, the IRS is not itching to put you in jail. They’re much more likely to save jail for those that engage in “flagrant cases involving criminal violations of tax laws.” You know, like going on the radio to talk about how you didn’t pay your taxes… Or not paying your taxes when it’s part of your conditional release.
In Hatch’s case, the former CBS’ Survivor champion was convicted of charges related to tax evasion and tax fraud in 2006. He was sentenced to 51 months in federal prison and appealed to the Supreme Court (!) who refused to hear his case. He then served just over three years before his release in 2009. By 2010, Hatch had not yet filed his tax returns and was eventually ordered back to jail. He left jail on supervised release in 2011 but reportedly failed to comply with the judge’s orders to file and pay his tax obligations. Together with penalty and interest, he owed (allegedly) close to $2 million. At this rate, he’d have to win two seasons of Survivor to pay that back.
His repeated failures to file and pay are the reasons that the IRS targeted Hatch. It’s not the norm. In fact, the IRS is more likely to slap you with a lien or levy than a jail sentence. It’s quicker, it’s cheaper and it’s more likely that you’ll actually settle your tax debt. From the IRS website:
A long-standing practice of the IRS has been not to recommend criminal prosecution of individuals for failure to file tax returns, provided they voluntarily file, or make arrangements to file, before being notified they are under criminal investigation. The taxpayer must make an honest effort to file a correct return and have income from legal sources. A letter from the IRS concerning taxes is not a notice that a taxpayer is under criminal investigation.
Realistically, the IRS wants to get paid (are you listening, Richard?). And they’re not going to get paid by throwing taxpayers in jail.
For the record, if you do owe taxes or if you haven’t filed, I do recommend getting compliant. I think that the best way to do that is to use a tax professional, but I do understand that there are situations when you want to work it out yourself. If you do use a tax professional, be sure to read the fine print and understand what you’re getting. In the case of IRSTaxSurvivor.com, you should note that they “are not a lawyer referral service or prepaid legal services plan.” They are, instead, “a media company and do not provide tax relief services.” Instead, they “may refer you to Certified Public Accounts, Enrolled Agents and/or Tax Attorneys but do not endorse or recommend them.”
And while I might question the choice of spokesperson here, you should also be aware that, as on the IRSTaxSurvivor.com site:
Testimonials or endorsements do not constitute a guarantee, warranty, or prediction regarding the outcome of a particular matter.
That goes for all such sites. Don’t be lured by celebrity (such as it is). Do your research. And that includes disclosures and privacy. In this case, for example, IRSTaxSurvivor.com might even disclose your info to the IRS. Per their privacy policy:
Disclosures include those we feel are required to provide our services or customer service, prevent fraud, perform research or comply with the law. Recipients include the Internal Revenue Service.
So read the fine print. Understand what you’re getting. And use some common sense. Don’t be blinded by the fat naked guy.
