What is the maximum penalty imposed for 10 years of tax evasion? My ex-husband, a small business owner, claimed he earned between $25,000 and $30,000 per year in a 10 year period. He made on average an additional $25,000 each year, most of which was in the form of checks, which were deposited into his bank accounts. Also, he has had several employees over the years...all of which he never gave W-9 forms or 1099 forms to. Sometimes he paid them by check. He has kept no business records, he just stashes receipts for expenses and supplies in an envelope. I didn't work during this period, but before and after our marriage have never fibbed about any of my income. If he were ever audited, what type of liability do I have because I signed these joint tax returns? Can he go to prison? What type of financial penalty would he get?