Something which has always scared the life out of me is the IRS, ever since I was younger and heard stories about them closing down businesses, hitting people with penalties and generally taking no nonsense from people when it came to paying their tax bills. For me this is why I have always used the service of Audit Defense, they take care of your tax returns and work with you on any audits and if you check out the Audit Defense reviews you can see for yourself just how much they have been able to help their clients. Many underestimate the power of the IRS which is why today we are going to have a look into just how you can get caught out and what the IRS can do.
Here is what they have to say regarding penalties:
“If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You may also have to pay a penalty if you substantially understate your tax, understate a reportable transaction, file an erroneous claim for refund or credit, or file a frivolous tax submission. If you provide fraudulent information on your return, you may have to pay a civil fraud penalty.”
The IRS will most certainly charge you if you file your tax return late and they will increase how much they charge you by each month that you go past your due date. They will also hit you with penalties if you make a late payment for your taxes and just like filling late, this will be more expensive as each month goes by. The fees vary depending on your individual situation but you can be absolutely sure that they will not be cheap.
Many small business owners will file their business taxes on their personal return, but even if this is the case you will be charged a different set of penalties if you are late in filing your business taxes or late in repaying them. As you can imagine businesses are charged significantly more for filing late. Another key point to watch out for if you are a business owner is that you don’t make any errors on the tax return. If you do make mistakes then you won’t be hit with a penalty but you will have to refile which could mean that you file late, thus incurring a penalty. Make sure that you check all information and that you have filed well before your due date.
If the IRS have found you to have committed or tried to commit fraud, or having field a frivolous tax return then you can expect to get hit with a huge fine, a fine large enough to ensure that you never do the same thing again.
Don’t mess around with the IRS, it simply isn’t worth it and it could cost you a significant amount of money.