If you don't file your tax return by the due date and assuming that your money,...

If you don't file your tax return by the due date and assuming that your money, you would be hit with two penalties: failure to file and failure to pay.

The failure-to-file penalty is equal to 5% of the taxes you owe for each part of a month you're late, up to a maximum of 25% of unpaid taxes. Therefore, this penalty reaches its maximum after a 5-month filing delay. For example, if you're two days late with filing and you owe $1,000 in taxes, you could be hit with a $50 penalty. If you're more than 6 months late, the maximum penalty is $250.

The failure-to-pay penalty is 0.5% of unpaid taxes for each part of a month you're late, up to 25% of unpaid taxes due. This penalty applies even if you file on time but don't pay what you owe. This penalty reaches its maximum after a 50-month delay in payment. For example, if you're two days late with paying and you owe $1,000 in taxes, you could be hit with a $5 penalty (10 times less than the failure to file penalty). A quick glance at these penalties shows why it's so important that you file your taxes on time, even if you can't pay on time. In most cases, the failure-to-file penalty is 10 times greater than the failure-to-pay penalty.

Question: Most people believe that the Government wants your tax dollars, whereas it seems that it wants your tax return much more than your money. Why is that? (NOTE: Your reply should be at least 250 words in length)

Expert Solution

ekkarill92 answered 1 year ago

If you don't file your tax return by the due date and assuming that you money,...

If you don't file your tax return by the due date and assuming that you money, you would be hit with two penalties: failure to file and failure to pay. The failure-to-file penalty is equal to 5% of the taxes you owe for each part of a month you're late, up to a maximum of 25% of unpaid taxes. Therefore, this penalty reaches its maximum after a 5-month filing delay. For example, if you're two days late with filing and...

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Questions 1-4 are about Extensions to File Your Tax Return. 1. Form ____________ allows you to...

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7. When you submit your tax return to the IRS, they screen your return for indications...

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