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. Only a taxpayer who fully neglects to file are reserved for this penalty in which this applies 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.
There will be a five percent of the total amount of net tax that is due per month the return is late if you fail to file 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.
An unpleasant penalty is awaiting for you if your return happens to be fraudulent. Taxpayers who avoid paying taxes usually get a serious penalty.
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.
When you have an S corporation or partnership, you will be assessed for a penalty for a year.
Being forgiven for filing your return late will depend on the validity of your reason. 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.
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. Knowing about the situations of the taxpayer due to failure of filing a return such as what has stopped them from doing so and when did it exactly happen is what the IRS should know.
All taxpayers have a chance of filing for a six month extension to file their return.
You may ask help from any firms who work on taxes.
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