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. This simply means that if your reason of unable to file your tax return is valid, the IRS will be forgiving.
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. A net tax due is the amount of tax which has a deadline in which you will be returning minus any other payments which is done on or before the tax return is supposed to be filed. A minimum and maximum amount can be charged to you by the IRS for failing to file a tax return.
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.
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.
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.
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. 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.
A six month extension is open for all taxpayers to file for them to file their return.
You may ask help from any firms who work on taxes.