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. Only a taxpayer who fully neglects to file are reserved for this penalty in which this applies 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. There is a minimum and maximum charge the IRS can charge any taxpayer.
A more severe punishment will be given to you if your return is a fraud. 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.Details such as the taxpayer cannot explain the reason of failure to file their return, if he is making up things that disagree with the IRS, if the taxpayer has a history or if he has the plan or ability to do 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.
When you have an S corporation or partnership, you will be assessed for a penalty for a year.
If your reason is reasonable enough for the IRS, you be forgiven for filing your return late. Being lazy to file your return and if your reason is that you did not want to file is not included in being a reasonable reason.
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. 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.
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.