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. This kind of penalty is applied and reserved for those taxpayers who entirely fail to file. 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. 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. 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.
To determine if the taxpayer should receive a penalty, the IRS will need to look for some following details.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. It is excluded when you just did not want to file or if you felt lazy in filing your return.
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. 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.
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.
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