Avoid Penalty by Filing a Tax Extension through Online
Avoid Penalty by Filing a Tax Extension through Online
If you are failed to e-file/file tax return or tax extension it will cost extensively. Delay in filing may result in interest charges and penalty that could increase your tax bill up to 25 percent or more. For late filing of return there is no penalty on which a refund is owed except for the delay of your refund.
The following are the penalties by IRS, if you do not file or pay your taxes on time.
If you miss the April 18 deadline to file your tax return or request a taxextension, you may face a failure-to-filepenalty: 5% of your unpaid taxes per month that you are late, up to 25% of your unpaid taxes.
If you file more than 60 days late, your minimumfailure-to-filepenalty will be 100% of your unpaid taxes or $135, whichever is smaller.
If you file on time but do not pay the full amount of taxes you owe, you may face afailure-to-pay penalty: 0.5% of your total unpaid taxes per month that you are late, up to 25% of your unpaid taxes.
If you are subject to both penalties, the 0.5%failure-to-paypenalty will be subtracted from the 5% failure-to-filepenalty, UNLESS your return is filed more than 60 days late.
If you file a tax extensionandpay 90% of your taxes owed by the April 18, 2011deadline you will not face any penalties, as long as you pay the remainder and file your return by the extended deadline.
Because thefailure-to-paypenalty is much less than thefailure-to-filepenalty, it is a good idea to file on time (either a tax return or a tax extension) even if you cannot afford to pay the taxes you owe. You will face less of a fine for paying late than for filing late.
Important: The only ways to avoid penalties is to e-file or files a tax return and pay all taxes due byApril 18.
A Note on Refunds:There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund. In order to receive a refund, the return must be filed within three years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later. Consult Family Physician Who Is Trained In All Areas Medicines What A Woman Needs To Know About Mens Wedding Rings How To Search For Kids Military Clothing Great Ways To Improve Online Content Pria Kataria Puri Collections Are Modern In Style And Indian In Expression by:Fashionlabel Hypnosis For Weight Loss, What It Can Do For You Along With Additional Benefits Breast Augmentation For Breast Cancer Survivors How To Select Designer Hoodies Frame Up Your Pictures And Photos In Style How I Make My First $1000 Online In Just 1 Month! Biomarkers Could Play Key Role In Heart Failure Treatment Let An Online Matrimonial Help You Build A Successful Marriage Five Esstential Steps To Buy Grape Seeds