Information on 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. A taxpayer who is irresponsible of filing this has a punishment since this applies to any type of tax return. You are off the hook for this penalty if you do have a good reason for being unable to file your tax return.
If you do not comply your tax return, it would cost you five percent of the total amount of net tax due monthly the return is late. 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.
An unpleasant penalty is awaiting for you if your return happens to be fraudulent. A penalty is usually given to those taxpayers who intently avoid paying taxes.
To determine if the taxpayer should receive a penalty, the IRS will need to look for some following details.If the taxpayer fails explain the reason of not to filing their return, if he is making up stories that disagree with the IRS, if the taxpayer has a history or if he is being capable of doing so, if he is trying to hide from the IRS, if he is paying cash for other expenses and if he has files in the past but has chosen not to file this time are what the IRS are looking for.
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. To be reasonable does not include saying that you did not to file because you felt lazy.
This just means that each particular case will be studied by the IRS to know if you should be given any penalty or not.
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.
A firm may help you on your taxes.
Source: Tax Return