April 16, 17, 18…and you have not filed your tax return. Clearly you have passed the annual deadline for filing your federal income tax return and pay the taxes you owe. By law, you are supposed to file your income and other forms of tax by the 15th of April every year. Some people file earlier, and as the Wealthy Living for Me, Durham, NC advises, it is much safer to file one’s tax returns that early. It saves you the last minute rush and the possibility of facing the consequences of filing late.
The Internal Revenue Service, or the IRS administers two different classed of penalty related to cases of non-filed tax returns. After you pass the compulsory deadline without paying or filing the returns, the IRS may assess your situation to determine whether or not to subject you to the penalty for failing to file your tax return or for failing to pay taxes you owe by the April 15 deadline.
There are various reasons why people fail to file their returns. At times, there are those who fail to file because they are caught up with time.
Folks who prefer to do their stuff at the deadline may often fall victims of this scenario. Wealthy Living for Me in Durham, NC observes that some people wait until they are left with just a few days, then they rush things up as they try to find a tax professional to prepare their returns.
In addressing this issue, Wealthy Living for Me, Durham, NC says that it is never advisable to wait that long. It is risky because as the deadline approaches, the tax preparers are often faced with a lot of work as many people queue up to have their returns filed.
In addition, Wealthy Living for Me, Durham, NC notes that people have to book the tax experts, and not just bump in and expect to have the work done as fast. These tax preparers typically serve many clients and will not be available to deliver on strict timelines.
Independent contractors have tax filing requirements that are different from those who are in formal employment. After serving different clients with different tax related issues, the Wealthy Living for Me in Durham, NC have identified confusion as one major reason that has caused a lot of their clients not to file their taxes or file in time. The tax professional advises however that you do not have to deal with the preparation yourself. When you find something confusing, instead of waiting to face interests or penalties for failing to keep the deadline, just find a tax professional to help you out.
This is never a defense before the IRS. But it is a reason that causes a lot of people not to file their taxes. Some people do not know what to include and what to include. Consequently they file the returns on their own and mess things up in the process by leaving something out, which can attract a failure-to-file penalty.
Delaying or failing to file a tax return is not all that hopeless a situation. A common temptation will be to wait to file your returns later because you owe so much that you doubt if you can pay all of it.
Don’t even think of filing at a later date because the failure-to-file penalty is generally greater than the failure-to-pay penalty. Always file, in time, even if you are not able to pay your taxes.
The IRS is a bit lenient with its taxpayers. It may be able to help you reach a payment agreement that works for your situation if you are unable to pay all of the tax due on your return. By communicating your situation to them, you escape any penalties and also arrive at a favorable payment plan for your taxes.
Since the problem of delayed or failure to file doesn’t go away on its own, take charge and act before it gets any later. Consider the above options. Additionally, you can find a tax preparer to help you decide what options will be best for you. The tax professional will also help you reach a workable plan so that you can avoid a repeat of such failure.
For more information on Wealthy Living For Me, you can contact
Cassandra Collins-Njie
Wealthy Living For Me
Durham NC
Cassandra Collins-Patterson