Filing income tax returns and filling the form is a highly complex task. In the US, this form has to be filled to obtain a refund of the surplus tax that was paid. One is typically entitled to get a refund if the tax paid exceeds the liability that is actually owed. The refund is usually directed to the tax payer’s next year’s taxes. The refund amount can also be deposited directly to the tax payer’s bank account or in the form of a check at the specified mailing address.
Impact of Failure to File Income Tax Return
A tax return needs to be filed if the gross annual income of a person exceeds a certain amount. This amount is fixed by law and is subject to change on an annual basis. Any failure or omission to file federal income tax returns is considered a serious federal crime under the section 7203 of Title 26, U.S.C.
This also becomes a punishable act if it is proved beyond doubt that the person was liable under law to file for a tax return and failed to do so deliberately. Further, the offence is triggered if there is a failure to make the return within the prescribed time.
Prompt Filing of Income Tax Returns
Prompt filing of income tax returns is essential so file for an extension in case you are delayed. This extension pertains to the filing time and not the paying time.
A taxpayer will incur a penalty if it takes years to clear off the tax amount. In this case, a ‘payment plan’ can be requested from the IRS. A payment plan is basically the provision to pay one’s taxes in installments.
However, if it seems feasible to pay your taxes within a few months’ time, go ahead and file for an extension along with a partial payment. The remaining amount can be paid till the extension date. The penalty will still be there, but you can avoid the convenience fee (when paying through a credit card). You can also set up the fee for the installment plan.
The income tax returns are viewed by many people as a strategy to get one’s money back. Still, getting a refund is definitely better than running into legal trouble for ‘owing money’ to the state.
Professional expertise and guidance can mellow the tensions and hassles related to filing an income tax return. So, log on to I want a refund and file income tax returns with confidence and ease.
