With taxes being an integral part of your daily commitment to better the residential area or government, maintaining them is significantly essential. There could be a massive line of disputes, and file complaints if you don’t. Although there is a civil tax penalties law firm to help you with disputes and take your stand if the call is unfair, simply not filing or paying your tax can lead to a massive amount of deduction and unnecessarily gulp up your savings! Let’s take a look at a few penalties resulting from taxpayers not going through with their taxes!
- Not filing your tax
A penalty apple if you fail to file your tax return within the due date. The penalty serves as a percentage of your to be paid taxes and can go up to 25% of the amount you haven’t paid. Ideally, the amount is about 5%. You can avoid this penalty by filing your taxes and paying them within the due date.
- Failing to pay taxes
This penalty is when you don’t pay the tax reported on the tax return within the due date and takes up to 25% of the unpaid taxes. The amount is calculated for how long you haven’t paid your taxes and can be avoided by paying your taxes on time.
- Undisclosed income
This penalty occurs when you don’t report the collected or deducted tax collected or deducted tax statement. If the income is admitted and not furnished, it has a lesser penalty rate than when it is not admitted. You can avoid this by correctly reporting your income.
- Fraudulent reporting
If the bank determines that the accounts reported are fake and not legible for the tax, the payer is liable to pay the penalty for fraud. This can include forged documents or an invoice that doesn’t legally exist. Make sure only to provide valid accounts while paying your taxes.
- Not reporting the information of the taxpayer
.This penalty is applied when the payer does not provide the statement of transaction or respond to the notice of the report. Further, any document related to the taxpayer can also deduct a penalty if not provided.
If the taxpayer is shown to have a good record and can also show a reasonable cause for not paying the taxes, the penalty amount can be reduced. If you’re unable to pay taxes on time, you can also file an extension of time and join a payment plan; With a vast number of penalties for various technicalities of taxpaying, these can add as much as 75% to your tax debt. A civil tax penalties law firm provides skilled expertise and represents taxpayers in official penalty disputes.