1. Whenever a taxpayer fails to file a tax return or the estimated tax due, they can face problems such as the income tax imprisonment sentences (not more than one year), a fine of $ 25,000 or maybe $ 100,000 if a company involved or charged with criminal act.
2. Any taxpayer who willfully fails to file a return and failure to pay the debt can be charged with a crime subject to imprisonment of up to five years while other may incur penalties.
3. It is possible to avoid the problem of income tax by willingly submit all returns that have been left un-filed. You can check out http://www.dynamicacctsolutions.com/our-services/business-tax-consultation/ for getting more knowledge about business accounting and tax preparing services.
4. The statute of limitations does not begin with un-filed tax return. Generally, the IRS has to assess taxes within three years after the return is submitted. IRS, because failure, have the right to see the tax year at any time in your life.
5. The tax may be assessed or the criminal justice process can happen to collect debts without a vote, if the taxpayer fails to file a return.
6. There is usually a punishment vote of 25% is added to the original tax debt owed if the taxpayer fails to file tax returns without justified reason.
7. When a refund is due, do not need to worry about the problem of income tax or penalty. return need be filed within three years from the due date to guarantee your refund. If after you submit you realize there is an error on the back, you have up to three years after the return was originally filed to claim a refund, or two years after you receive the payment of taxes, which ends later.