You Do Not Need to File a Tax Return
Essex & Associates www.essexinc.biz April 3, 2012
If you are owed a refund, there is no penalty for not filing your taxes on time.
The filing deadline this year is April 17, due to the fact that Washington D.C. celebrates Emancipation Day as a holiday and the IRS is closed.
By the way, Washington D.C. is the only municipality in the entire country to close federal offices on Emancipation Day.
If you do owe money then you need to file by the deadline or file for an extension.
The extension is good till October 15.
The extension to file is just that, it is not an extension to pay. If possible you should make a estimated payment on taxes owed.
If you can't pay you should still file.
First of all, if you do not file by the deadline or extension, in addition to interest accrued, you will mostly likely be penalized under failure-to-file.
The failure-to-file penalty is, under most circumstances, 5% of the amount of unpaid tax.
This same amount applies to each new month that the return is late, but the penalty cannot exceed 25% of the total amount of unpaid tax.
If you choose not to file in hopes that the IRS simply won't care or won't find you if they do, this is a mistake.
Quickly disappearing are the days when people could hide from the IRS. The IRS does still lack in efficiency; but with upgraded technology, they will eventually send you a notice.
In the meantime, penalties and interest are being accrued.
The IRS does take tax filing seriously.
The IRS system cross checks W-2 statements and 1099 reports against filed returns.
If it cannot find a match, it will begin a Taxpayer Delinquency Investigation.
From there, it will eventually locate the individual or business that has failed to file.
If you have made the mistake of not filing or not paying taxes on filed returns, you now need the help and guidance of a tax resolution expert.
Don't let an already stressful situation get further out of hand.
Contact an expert and take the appropriate steps to resolving your tax filing and/or tax debt.
Wayne T. Essex Ph.D.
Essex & Associates
Tax, Accounting, Payroll
7501 Paragon Road
Dayton, Ohio 45459
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