What is the Biggest mistake you can make when it comes to taxes?
Filing your Tax return late! That is right maybe you guessed it but most don’t get this right.
The late-filed return is filed after the last extension expired. That’s what will cause three bad things to happen.
The First bad thing the IRS will notice and you increase the chances of being audited from 1-3% to almost 50%. So yes file late and be ready to meet the IRS!
Second thing when you file late you trigger the 5 percent per month penalty not to exceed 25% of the tax due. So if you owed $10,000 your penalty is $2500 nope it’s not deductible.
The Thrid bad thing that happens, if you owe the “failure to file” penalty you likely also owe the penalty for “failure to pay.” The failure-to-pay penalty equals 0.5 percent a month, not to exceed 25 percent of the tax of course add to that. You will also pay interest on the overdue taxes & penalties from the original due date.
What do you do? To make it foolproof just file the returns on time. Otherwise you would have to prove that you that you exercised ordinary business care and prudence but were unable to file the tax return on time, you might escape the penalty, according to IRS regulation. Chance of that are slim and none.
If you have missed the deadline or just choose not to file for years we can help! This happens much more often than you think millions of Americans don’t file every year and millions more owe. We don’t pass judgement here we just lend a hand to help you get through the problems the IRS causes.
Call us today for a Free Consultation (803) 938-4729