Information on Tax Returns
The IRS will file you a penalty if you don’t work on your tax return in which it has a tax that is due. This kind of penalty is applied and reserved for those taxpayers who entirely fail to file. 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. There is a minimum and maximum charge the IRS can charge any taxpayer.
If your return is a hoax, expect that a punishment for you is more severe. It is not rare that there are people who evade paying taxes so a more severe penalty is given to them.
To determine if the taxpayer should receive a penalty, the IRS will need to look for some following details.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.
When you have an S corporation or partnership, you will be assessed for a penalty for a year.
If you filed your return late, you will be forgiven only if you have a valid reason. It is excluded when you just did not want to file or if you felt lazy in filing your return.
Any reason will be scrutinized by the IRS to know if you are entitled for your penalties to be waived.
To waive your failure to file penalty, the IRS would have some questions for the taxpayer. Some these questions include about what happened to you that you have not been able to file your return and when was this, an exact reason that have stopped the taxpayer to file a return and when was it solved, the taxpayer’s response when he did not file a return and their actions after the incident changed and the taxpayer has filed a return.
All taxpayers have a chance of filing for a six month extension to file their return.
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