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. This kind of penalty is applied and reserved for those taxpayers who entirely fail to file. If you have a valid reason of not being able to file your tax return, you will be forgiven.
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. 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.If the taxpayer fails explain the reason of not to filing their return, if he is making up stories that disagree with the IRS, if the taxpayer has a history or if he is being capable of doing 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 are what the IRS are looking for.
Failing to file a tax return and you have an S corporation or partnership, you will have a penalty which is for a year.
If you filed your return late, you will be forgiven only if you have a valid 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. 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.
All taxpayers have a chance of filing for a six month extension to file their return.
A firm may help you on your taxes.
Source: Tax Return