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Tax penalties are very common. Every year, millions of Americans are faced with owing the IRS additional money in penalties. Avoiding the failure to file tax penalty is extremely important as this is one of the most hefty tax penalties you can receive and it is one of the easiest penalties to avoid. The last thing you want to do is give more money to the IRS for a simple mistake or something that could have been easily avoided. The only thing you should be worrying about is how you are going to pay your taxes, not how are you going to be able to pay your penalties
Here are a few tips that can help you prevent the failure to file tax penalty:
1. File your taxes on time. As you can imagine, this is the best way to avoid this penalty. If you send your final return by April 15th you never have to worry about this. Does it get any easier than that? If you know you will not be able to meet this deadline, you should immediately contact the IRS to file for an extension. Filing for an extension doesn't mean you get an extension on paying your taxes as well. If you file an extension and don't pay your taxes you will be hit with the failure to pay penalty. The failure to pay penalty is .5% a month on the total tax amount owed, which is significantly less than the 5% a month if you didn't file your taxes. Remember, the IRS is willing to work with you if you keep them in the loop. The last thing you want to do is wait around and hope that the IRS does not realize that you filed late – you are not going to be so lucky.
2. Remove penalties. Have you been hit with a failure to file tax penalty? Do you feel that this is unfair? If so, you may be able to have them removed through penalty abatement – although this is not guaranteed. You need to prove to the IRS that you had a reasonable cause for not filing on time. By successfully doing so you should be able to have your failure to file tax penalty wiped out. Believe it or not, the IRS removes approximately 30 percent of the penalties that they charge each year. So, as you can see, the IRS is willing to listen to you. But if you don’t have reasonable cause, your failure to file tax penalty will probably stay in place.
To avoid the failure to file tax penalty you should file your return on time or request an extension. Just understanding how the basic failure to file and failure to pay penalties work can save you a lot of money in penalties. You have to realize that the IRS looks at not filing your taxes as 10 times more severe than not paying your taxes, which is why the penalty is 10 times greater. So even if you can't pay your taxes, be sure to file to avoid a lot of penalties. If you are hit with the failure to file penalty and have a good reason for not filing on time, be sure to take advantage of penalty abatement to remove the penalties. No matter what, make sure you do what you can to avoid the failure to file tax penalty.
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?? 1 → Extension of the program to all in need2. act of stretching or straightening out a flexed limb
3. an educational opportunity provided by colleges and universities to people who not enrolled as regular students
1. an addition that extends a main building
2. an addition to the length of something
3. an additional telephone set that is connected to the same telephone line
1. amount or degree or range to which something extends
?? 1 → The wire has an extension of 50 feet2. the ability to raise the working leg high in the air
?? 1 → The dancer was praised for her uncanny extension?? 2 → Good extension comes from a combination of training and native ability1. the most direct or specific meaning of a word or expression; the class of objects that an expression refers to
?? 1 → The extension of `satellite of Mars' is the set containing only Demos and Phobos1. the spreading of something (a belief or practice) into new regions
2. a string of characters beginning with a period and followed by one to three letters; the optional second part of a PC computer filename
?? 1 → Most applications provide extensions for the files they create?? 2 → Most BASIC files use the filename extension .BAS1. a mutually agreed delay in the date set for the completion of a job or payment of a debt
?? 1 → They applied for an extension of the loan
Definition of the Term: Failure1. an unexpected omission
?? 1 → He resented my failure to return his call?? 2 → The mechanic's failure to check the brakes2. an act that fails
?? 1 → His failure to pass the test1. an event that does not accomplish its intended purpose
?? 1 → The surprise party was a complete failure1. a person with a record of failing; someone who loses consistently
1. loss of ability to function normally
2. lack of success
?? 1 → He felt that his entire life had been a failure?? 2 → That year there was a crop failure3. inability to discharge all your debts as they come due
?? 1 → The company had to declare bankruptcy?? 2 → Fraudulent loans led to the failure of many banks
1. a steel hand tool with small sharp teeth on some or all of its surfaces; used for smoothing wood or metal
2. office furniture consisting of a container for keeping papers in order
1. a set of related records (either written or electronic) kept together
1. a line of persons or things ranged one behind the other
1. file a formal charge against
?? 1 → The suspect was charged with murdering his wife2. place in a container for keeping records
3. record in a public office or in a court of law
1. proceed in line
?? 1 → The students filed into the classroom
Definition of the Term: Filing1. preservation and methodical arrangement as of documents and papers etc.
2. the act of using a file (as in shaping or smoothing an object)
1. the entering of a legal document into the public record
1. a fragment rubbed off by the use of a file
1. the bureau of the Treasury Department responsible for tax collections
1. something that remunerates
?? 2 → He wasted his pay on drink?? 3 → They saved a quarter of all their earnings2. bear (a cost or penalty), in recompense for some action
?? 2 → She had to pay the penalty for speaking out rashly?? 3 → You'll pay for this opinion later1. convey, as of a compliment, regards, attention, etc.; bestow
1. give money, usually in exchange for goods or services
?? 1 → I paid four dollars for this sandwich?? 3 → They pay him to write the letter4. do or give something to somebody in return
?? 1 → Does she pay you for the work you are doing?5. bring in
?? 2 → How much does this savings certificate pay annually?6. make a compensation for
?? 1 → A favor that cannot be paid back1. be worth it
?? 1 → It pays to go through the trouble
Definition of the Term: Penalty1. (games) a handicap or disadvantage that is imposed on a competitor (or a team) for an infraction of the rules of the game
2. the disadvantage or painful consequences of an action or condition
?? 1 → Neglected his health and paid the penalty1. a payment required for not fulfilling a contract
1. charge against a citizen's person or property or activity for the support of government
1. make a charge against or accuse
?? 1 → They taxed him failure to appear in court1. use to the limit
?? 1 → You are taxing my patience1. levy a tax on
?? 1 → The State taxes alcohol heavily?? 2 → Clothing is not taxed in our state2. set or determine the amount of (a payment such as a fine)
1. a separate and self-contained entity
1. an action
?? 1 → How could you do such a thing?2. an entity that is not named specifically
?? 1 → I couldn't tell what the thing was1. any attribute or quality considered as having its own existence
?? 1 → The thing I like about her is ...1. a vaguely specified concern
?? 1 → Several matters to attend to3. a special objective
?? 1 → The thing is to stay in bounds1. a statement regarded as an object
?? 1 → To say the same thing in other terms?? 2 → How can you say such a thing?1. an event
?? 1 → A funny thing happened on the way to the...1. a persistent illogical feeling of desire or aversion
?? 1 → He has a thing about seafood
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