| During the previous years, the fines and penalties, | | | | and as well does not pay his income-tax return, the |
| imposed to tax-evasion and for not being able to | | | | most he can get stricken with is a monthly of five |
| adhere to the tax law, have been considerably | | | | percent up to fifty percent of the overall tax |
| increased and even made tougher. Now if you do not | | | | deficiency. |
| want to get affected with this tough penalty, then you | | | | Ways on how to prevent from getting hit with tax |
| should not file and pay your income tax return late. | | | | penalty. These ways include a proof involving a |
| This you can do by using online-tax-software. By | | | | reasonable cause and acceptably valid excuses: |
| availing to a free online tax software to file your | | | | Grave family disease or demise |
| income-tax-return, you can both definitely save money | | | | Dependence on a third-party income tax preparer |
| and easily prevent penalty. | | | | who has given you an incorrect advice. (Remember |
| Even though you extend filing your income tax return, | | | | this: Tax payers are always expected to be aware of |
| still you need to pay the tax by its original due date, | | | | the due date of his income tax return, in spite of the |
| and not on the extended date. You need to create an | | | | advice from his tax preparer. |
| approximation and then shell out an amount which | | | | Misplaced, lost or destroyed records caused by |
| almost close to the precise figure as much as possible. | | | | fire and any other natural disasters. |
| However, if your rough estimation is not correct by | | | | And other unwanted crisis which made it |
| above ten percent, you will be extremely suffering the | | | | impossible for a tax payer to act in accordance with |
| tough penalty as if you never had been given an | | | | the IRS rules and regulations. |
| extension. Those who file their income tax return late | | | | What is negligence penalty? This is effective for |
| will only be subjected to the 'failure-to-file' penalty, | | | | income tax returns which have due dates right after |
| which is Twenty-Five percent of your tax. | | | | December 1988. The exact amount of the negligence |
| Moreover, the maximum joint failure-to-file and | | | | penalty is five percent of the income tax return which |
| failure-to-pay-tax penalty is five percent per month. | | | | has been underpaid. The said penalty is immediately |
| Nonetheless, the Twenty-five percent maximum | | | | imposed right after the IRS has audited a tax payer's |
| penalty is imposed to every failure individually. As a | | | | tax return and has determined that he has indeed |
| result, if a tax payer does not file his income tax return, | | | | underpaid his tax. |