Importance of 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.
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. Net tax due refers to the amount of tax that is due on your return excluding any bills done on or before the tax return that is supposedly filed. 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. A penalty is usually given to those taxpayers who intently avoid paying taxes.
There are following things that the IRS will look for prior to filing a penalty.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.
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.
This just means that each particular case will be studied by the IRS to know if you should be given any penalty or not.
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.
There is an option for a six month extension to file for taxpayers for them to be able to file their return.
A firm may help you on your taxes.
Source: Tax Return