Saturday, March 21, 2009

Filing income tax late

Filing income tax late
Late Filing Penalties - Income Tax
After cinque months, if you still bear not paid, the 0.5% failure-to-pay penalty bears on to run, up to 25%, until the tax is paid. Thus, the absolute penalty for bankruptcy to file and pay can be 47.5% (22.5% late filing, 25% late payment) of the tax owed.
And, by the way, the IRS also charges interest, combined daily, on any unpaid tax from the due date of the return until the date by payment. To make affairs worse, this interest is not allowable. The IRS concern rate for underpayments changes all three months and is currently 6% for April-June, 2005. For current concern rates, go to News Releases and Fact Sheets and find the latest Internal Revenue release entitled Quarterly Interest Rates. The half of one per centum rate increases to one percent if the tax cadaver unpaid after several bills have comprised sent to you and the IRS issues a acknowledge of intent to impose.
Elisions to the no-tax-no-penalty rule. Certain tax returns are data returns and typically there is no income tax liability shown on these returns. However, late filing penalisations apply to Partnership and Subchapter S Corporations. The late charging penalty is $25 per daylight for each better half or for each shareowner.