Delay In Filing The Taxes May Lead You To Hassle

Penalties and Substitute Returns

If you missed the tax filling deadline your next step should be to file as quickly as possible. April 15 the day for every working American to remember, and by April 15 if you are unable to file it then can face heavy fines and penalties that even include jail time. According to the rule of Internal Revenue Service 6651 (a) (1) there is a late filing penalty if you file your taxes one day late. If there is a reasonable reason for the delay then IRS may not charge with penalty it happens in rare case you have not received the proper information on wage and tax from your employer. IRS may not charge 5 percent for first month in a rare case but if you still delay in paying the tax IRS will continue to charge you 5 percent for the unpaid taxes. It also exceeds up to 25 percent every month for the unpaid taxes. This will be a burden for you if you already have unpaid taxes. You will not be charged for penalty if you owed money by the IRS and if you still don’t pay for three years of the due date you will not get a refund of the money owed.

It is also possible that IRS pay taxes on your behalf using a substitute return. They will inform you once the return is paid in such case the IRS get information about the person from other sources like earnings from the employer then this return may have higher taxed amount. Once the IRS file on your behalf, you still have to file your return and if your return is filed any deductions and exemptions listed on the return will be paid in your tax bill. You will receive a six month grace period if you fill out extension form before April 15.

Your property may come in hassle

If you make delays in payment which you owe to IRS they may collect your property. Inform the IRS if you are filing the taxes late to avoid the hassles on property. A tax boundary will be given to every property owned by you if you have unpaid taxes. IRS may also take your earnings for collection by contacting your employer. The IRS will also give you installment option of payment of money if you are still not in a condition to pay. There are many underpayment penalties these can be paid on different levels, from small fines to criminal charges depending on the decision of IRS. Some charges include criminal or civil fraud, negligence, or frivolous return these penalties can also extend from high fines to jail time.

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