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For follow-up discussion and general commentary on the topic. Comments are sorted chronologically.
Because of the sacrifice of Christ, God sees only the righteousness of Christ when He looks at Christians. Our sin has been nailed to the cross with Jesus, and we will never be punished for it.
Every transgression of the law is sin. 1 John 3:4
Technically, misrepresenting the truth (bearing false witness) or even driving one mph over the speed limit is a sin.
Therefore, it is impossible to not sin.
When saved, believers are justified (declared not guilty) and sealed with the indwelling Holy Spirit.
Jesus paid our sin debt and God keeps no record of our sins.
We become dead to sin, yet still struggle with sin. Romans 7:15-25
All things are lawful for me, but all things are not helpful. All things are lawful for me, but I will not be brought under the power of any. 1 Cor. 6:12 NKJV
However, God may choose to withhold His blessings from those believers taking advantage of freedom from sin (Deuteronomy 28).
Some would call this punishing His children and some would call this correcting His children.
It's better to ask, "Does God correct us when we sin?"
A good father doesn't "spare the rod" and spoil his children. Proverbs 13:24, 23:13-14
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