Wesley Snipes Settles with the IRS

Actor Wesley Snipes has reportedly agreed to pay his taxes to the IRS and will avoid jail time for failing to file his tax returns and attempting to claim false refunds. No details of the settlement have been released, but E! Online reports that "the actor has agreed to make good on millions of dollars in back taxes; in exchange, federal prosecutors purportedly have agreed to allow him to continue working to erase his debt."

Snipes' tax troubles and settlement offer important insights into how the IRS works. The IRS really does want people to file their back taxes and set up a payment plan to get out of tax debt. These are tools any taxpayer should use to resolve problems with the IRS.