In a tough economy, the income tax burden on individuals becomes more of a weight. Add the payments to higher gas prices, mortgages that are being reset at lofty levels and rising food costs and the results can be awful.

But at least corporations are paying income taxes to carry part of the burden of running the federal government, right? Too bad that it turns out that this assumption is wrong. As The New York Times writes, "Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released Tuesday by the Government Accountability Office, the investigative arm of Congress"

How sweet a deal is that?

Part of the trick is that many companies move money to countries outside the U.S. where the tax burden is lower.

In a period where the federal deficit is at nose bleed levels and individual tax payers are being crushed, Congress will probably be upset enough to pass bills to correct the inequity.

How the companies got away with it for so long is a question that is pretty disturbing.

Douglas A. McIntyre is an editor at 247wallst.com.

This post is part of a series where personal finance expert Dan Solin looks at money moves that may seem smart in tough economic times, but are actually quite dumb. See all 12.

If you fail to file your tax return because you owe more than you can pay, you are digging a deep hole for yourself. It will not be easy to climb out of it.

The IRS treats failure to file a tax return as a far more serious offense than filing a tax return and not paying the full amount of the taxes due.

If you fail to file a tax return, the IRS has the right to prepare and file one for you. The return prepared by the IRS may not give you credit for deductions and exemptions to which you may be entitled. Once the return is prepared, the IRS can bill you for the amount it calculates is due, plus penalties and interest.

While it is not the current policy of the IRS to criminally prosecute taxpayers who fail to file returns, it can happen. If you do not file voluntarily, or make arrangements to file, and you receive a notice from the IRS that you are under criminal investigation, you might run out of options and find yourself facing a criminal trial.

A far better option is to file your returns on time (or seek an extension) and discuss with the IRS the options it has available for making payments over time.

You may qualify for paying your taxes in installments, particularly if the amount owed is less than $25,000 including combined tax, payment and interest.

You also may qualify for an "offer of compromise," which will resolve your tax liability for an amount less than you might otherwise owe. There are a number of stringent requirements imposed by the IRS in order to qualify for an offer of compromise. However, the IRS has broad discretion to resolve tax liabilities if the taxpayer can demonstrate that "... exceptional circumstances exist such that collection of the full amount would create economic hardship...."

You should consult with a tax advisor to be fully informed of your rights in dealing with overdue taxes. But remember, the problem will not just go away. Failing to file your tax returns will only make it worse.

Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books, 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, 2008).

The Internal Revenue Service is reporting that it still has about 5.2 million tax rebate checks which it cannot send out because the people who should get them have not filed a 2007 tax return. According to a report in USA Today, these citizens only need to fill in a few lines on IRS form 1040A, in order to get their money. The IRS says that veterans and retirees, those who could use the money the most, make up the major portion of the population that has not yet received it's rebates. The IRS expects to issue 124 million rebate payments by year's end. So far, about 76.5 million of those payments have gone out.

A New Hampshire couple have taken refuge in their home as an income tax 'protest.' After reading Zac Bissonnette's take, I just couldn't leave this story alone. Here's my response:

Dear Mr. and Mrs. Anarchy,

Pardon me for interrupting your solitude but it appears to me that you may have made a grave error. I'm expecting that you'll be able to read this unless your Internet connection has been severed from the federally protected communication streams. At this time I must ask you if you have ever read the American Constitution. Unless I'm mistaken, Congress empowered the government to collect income tax quite some time ago.

I'm hoping that you have surrendered your vehicles by now. Being that you have no use for federally subsidized roads, I suspect that you plan to walk for the rest of your lives. Please be sure that you take your gas masks along on your walks because the EPA has indicated that it is no longer willing to assure that you have clean air to breathe. When you get home from walking you may wish to consider twice if you'll have a drink of water due to the fact that you have implied that safe water standards no longer apply to you. The government of the United States shall honor your desire to be unprotected in the matters of breathing and hydration.

In advance of your starvation, I'd like to thank you for surrendering all the food you have, with the exception of those things which are not USDA inspected. I apologize that you have little left to eat but the USDA has indicated that it is no longer interested in protecting your digestion. Additionally, every inspector of every product at every port, air terminal and border crossing has made it clear that they will no longer work for you. It is a shame that you shall soon be naked, diseased and starved to death but all federal services rendered in your name have been suspended as you requested.

Please inform us as soon as possible where it is that you shall be moving to. We, as a nation have no desire to force you to remain within our borders. It is possible that some territory remains near the Arctic Circle where you may reside untaxed for the remainder of your lives. We suggest that you go there as soon as possible. Please do be careful as you walk naked, hungry and without personal security. We would hate for some nasty international criminal to make prey of you. Rest assured that there is a large pool of payroll tax paying individuals who will be more than happy to cast lots for your home. Now, please make a hasty exit you deadbeats. We honestly don't want to keep you here.

Best Regards,

Gary E. Sattler