The fees are used to benefit all citizens. Tax collections supporting health care, national defense budget, social services, and much more. In order to achieve the right balance and regular income, the federal government promotes the responsible taxpayers who pay on time. Otherwise, the law imposes penalties for all non-compliant individuals. In order to avoid tax problems with the Internal Revenue Service (IRS), it is strongly recommended to submit tax returns early.

Most citizens would probably affect the payment of tax not paid and the appropriate sanctions. But the government acknowledges, as theft of national and municipal budgets, and therefore must be punished according to law. Filing income tax returns deadline is the 15th day of April. Failure of payment of debt accumulation account. IRS starts to punish you for your interest and penalties on unpaid taxes 16 April. Then you start to accumulate tax problems.

Failure to File Penalty

Failure to file tax returns by the deadline, including extensions means that a person must pay the failure to file penalty. Penalty is 5 percent of the unpaid tax for each month or part month that a return is late. The maximum penalty is 25 percent.

Failure to pay fine

In contrast to the failure to file penalty for failure to pay is the maximum tax cap. This penalty is calculated as 0.5 percent for each month that the tax is not paid in full, while the balance is paid.

Penalty for frivolous Back

Once the file is inaccurate tax return the amount to be paid from $ 500. Some taxpayers who play tricks to interfere in the income tax laws. However, once proven guilty of filing frivolous return penalty that may attach to other penalties provided for under law.Accuracy question of negligence, disregard, and an understatement of income tax is also punishable under the Income Tax Act.

Tax avoidance and evasion

Tax evasion 'legal' strategy to change the financial capacity to apply for deductions and exemptions provided under the tax laws. For example, individuals may invest a huge sum of money in municipal bonds because the interest on these bonds are not considered taxable income, or individuals can shift their assets to their children in order to avoid taxes. On the other hand, tax evasion is defined as the illegal policy of paying taxes under false publication of taxable income. It is a criminal offense punishable by state and federal laws. Tax evasion is usually rampant among other crimes associated with tax problems.

In order to avoid the accumulation of charges and penalties, file your income tax return on time. Serious tax problems can get in your way otherwise. The more time passed between the date and at a later date, the greater the amount of which is for you. Thus, if taxes are left unpaid IRS may have your account, such as mortgages or any of its assets to obtain credit. Even the IRS can enforce collection actions such as taking your property or to apply them in their income. To help you with your federal and state financial matters, tax consulting a lawyer. Pesky tax problems and require a legal expert to determine a discrepancy in your account. You do not want to exchange blows with the IRS, is not it?

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