What to Know About Tax Returns
When you fail in filing a tax return and that tax return has a tax that is due, there is a penalty issued for you by the IRS. A taxpayer who is irresponsible of filing this has a punishment since this applies to any type of tax return. If you have a valid reason of not being able to file your tax return, you will be forgiven.
A cost of five percent will be added to the total amount of net tax due per month the return is late if ever you did not work on 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. A minimum and maximum amount can be charged to you by the IRS for failing to file a tax return.
A more severe punishment will be given to you if your return is a fraud. A penalty is usually given to those taxpayers who intently avoid paying taxes.
The IRS will be looking for some things before filing a penalty to a taxpayer.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.
A penalty of 12 months will be given to you if you fail to comply your tax return and you have an S corporation or partnership.
Being forgiven for filing your return late will depend on the validity of your reason. 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.
There are questions the IRS will ask about filing you a penalty or not. A reason that have caused the taxpayer not to file a return and when did it happen, what has happened to the taxpayer that he did not file a return and when was this solved, the taxpayer’s reaction regarding to failure of filing a file and the taxpayer’s reaction upon changing the situation and that the taxpayer has filed a return are some things that the IRS would want to know about.
A six month extension is open for all taxpayers to file for them to file their return.
It would be helpful for you to ask help on taxes firm.