Information on 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. This kind of penalty is applied and reserved for those taxpayers who entirely fail to file. This simply means that if your reason of unable to file your tax return is valid, the IRS will be forgiving.
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. There is a specific amount the IRS can charge you for failure to file your tax return.
An unpleasant penalty is awaiting for you if your return happens to be fraudulent. 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.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.
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.
There is an option for a six month extension to file for taxpayers for them to be able to file their return.
You may ask help from any firms who work on taxes.