What to Know About Tax Returns
A penalty will be issued against you by the IRS if you fail to comply a tax return in which that tax return has a due. Only a taxpayer who fully neglects to file are reserved for this penalty in which this applies any type of tax return. This simply means that if your reason of unable to file your tax return is valid, the IRS will be forgiving.
There will be a five percent of the total amount of net tax that is due per month the return is late if you fail to file your tax return. The amount of tax which is due on your return excluding any payments done on or before the tax is supposed to be filed is what a net tax due means. There is a minimum and maximum charge the IRS can charge any taxpayer.
An unpleasant penalty is awaiting for you if your return happens to be fraudulent. It is not rare that there are people who evade paying taxes so a more severe penalty is given to them.
There are following things that the IRS will look for prior to filing a penalty.The following details such as the taxpayer cannot explain the reason of failure to file their return, if he is making up things that is not agreeing with the IRS, if the taxpayer has a done this before or if he has the ability to do so, if he is hiding from the IRS, if he pays cash for other expenses may it be business or personal and if he there are files in the past but has chosen not to file this time.
Failing to file a tax return and you have an S corporation or partnership, you will have a penalty which is for a year.
If your reason is reasonable enough for the IRS, you be forgiven for filing your return late. To be reasonable does not include saying that you did not to file because you felt lazy.
To know if you should be given any punishment or otherwise, a taxpayer’s case will be thoroughly studied and reviewed by the IRS.
The IRS will have some questions asked to you about whether to continue your penalty or not. Knowing about the situations of the taxpayer due to failure of filing a return such as what has stopped them from doing so and when did it exactly happen is what the IRS should know.
A six month extension is open for all taxpayers to file for them to file their return.
You may ask help from any firms who work on taxes.
Source: Tax