What to Know About 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. This simply means that if your reason of unable to file your tax return is valid, the IRS will be forgiving.
If you do not comply your tax return, it would cost you five percent of the total amount of net tax due monthly the return is late. 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.
The IRS will be looking for some things before filing a penalty to a taxpayer.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. It is excluded when you just did not want to file or if you felt lazy in filing your return.
This just means that each particular case will be studied by the IRS to know if you should be given any penalty or not.
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.