Wednesday, 1 April 2015

Willful Filing as Late For Income Tax Returns Even After Filing of Form 4868 and Beyond Attracts Penalty

Now we can see that how a failure of timely file of individual income tax returns on time even beyond the extended time of request through IRS form 4868 may result in a penalty called “Failure to Timely File Penalty” which come through section 27 of Code of Federal regulations (CFR) 24.274-Failure to timely pay tax or file a return.

By this CFR in force, the penalties for failure to pay tax at the time required, for willful refusal to pay the tax as per section 27 and for fraudulent nonpayment of tax are provided for in 26 U.S.C. 5661 and 6656. In addition to these penalties, there is a penalty for the delinquent filing of a tax return, imposed as an addition to the tax shown on the return, amounting to five percent for each month or fraction thereof of the minor crime or neglect of one’s duty, not exceeding 25 percent in the aggregate, unless it is shown that the neglect of one’s duty is due to reasonable cause and not to willful neglect.

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However in the case of individual or as common income tax filers, the fraudulent non-payment may not occur as presumed unless or otherwise those involved in spirits trade like wine, where-in this section 26 U.S.C. 5661 and 6656 as stated as whoever, with intent to defraud the United States, fails to pay any tax imposed upon wine or violates, or fails to comply with, any provision of subchapters of USA laws, or regulations issued pursuant thereto, or recovers or attempts to recover any spirits from wine, shall be fined not more than $5,000, or imprisoned not more than 5 years, or both, for each such offense, and all products and materials used in any such violation shall be forfeited to the United States.

This also includes other offenses as punishable and the law states-Any proprietor of premises subject to the provisions of subchapter of US law, or any employee or agent of such proprietor, or any other person, who otherwise than with intent to defraud the United States violates or fails to comply with any provision of subchapter or subpart of part I of subchapter A of US law, or regulations issued pursuant thereto, or who aids or abets in any such violation, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense.

Here one should not get misconstrued about the subject as present in this blog but it is always about that whoever as an individual who need to submit the income tax returns to IRS within the prescribed time as April 15th of 2015 should be dutiful. Whatever tax as figured by such individuals if could not be paid can be deferred through request of IRS form 4868 and this may only extend time for payment and not time to pay tax as one have to pay truly to IRS.IRS will include interest payment along with figured tax dues. But when one tries to postpone the tax payments with interest even beyond the extension time of 6 months as given by IRS form 4868 then may violating the IRS law to call for undue penalty should be understood.

File your extension form 4868 in case for deferring tax payments upto six months through IRS certified tax partner



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