According to the IRS website:
"The Failure to File Penalty applies if you don't file your
tax return by the due date. The penalty you must pay is a
percentage of the taxes you didn't pay on time."
This statement assumes you have not paid taxes on-time.
What happens in a case where a person pays their taxes on
time each year but simply chooses not to file a return?
This statement assumes you have not paid taxes on-time. What happens in a >case where a person pays their taxes on time each year but simply chooses
not to file a return?
On 04/07/2022 18:18, Rick wrote:
According to the IRS website:
"The Failure to File Penalty applies if you don't file your tax return by
the due date. The penalty you must pay is a percentage of the taxes you
didn't pay on time."
This statement assumes you have not paid taxes on-time. What happens in
a case where a person pays their taxes on time each year but simply
chooses not to file a return?
Well, money-wise, nothing. Unless. The IRS doesn't know all tax has been >paid until the return is filed, so they may come looking. Or the case may >find its way to the substitute for return program where the IRS may
determine the taxpayer owes more than he/she thought, and penalties will >apply. Self-employed taxpayers will be giving up their social security >credits if they don't file. Assessment statutes don't start running until >the return is filed. Mortgages and school loans may be hard to get without >proof of filing.
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwj-kPjAlIP3AhWWm2oFHcRMCawQFnoECBYQAQ&url=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-news%2Ffs-08-12.pdf&usg=AOvVaw2tkO-pt-Bdc-nXF7ss8mlJ
I understand the case where the IRS has somehow determined
that the taxpayer owes more than he or she thinks. But I'm
talking about a case where the taxpayer correctly determines
how much tax they owe and then makes sure they pay that
exact amount each year through a combination of appropriate
withholding and/or estimated tax payments throughout the
year followed by payment of any net balance owed by April 15th.
Why would anyone do this? I don't know - perhaps to make a
statement or because they have deep-rooted disagreements
with the tax system or maybe just to mess with the
government in a small way.
"paultry" wrote in message news:t2nv3c$rf0$1@dont-email.me...
On 04/07/2022 18:18, Rick wrote:
According to the IRS website:
"The Failure to File Penalty applies if you don't file your tax
return by the due date. The penalty you must pay is a percentage of
the taxes you didn't pay on time."
This statement assumes you have not paid taxes on-time. What happens
in a case where a person pays their taxes on time each year but
simply chooses not to file a return?
Well, money-wise, nothing. Unless. The IRS doesn't know all tax has
been paid until the return is filed, so they may come looking. Or the
case may find its way to the substitute for return program where the
IRS may determine the taxpayer owes more than he/she thought, and
penalties will apply. Self-employed taxpayers will be giving up their
social security credits if they don't file. Assessment statutes don't
start running until the return is filed. Mortgages and school loans
may be hard to get without proof of filing.
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwj-kPjAlIP3AhWWm2oFHcRMCawQFnoECBYQAQ&url=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-news%2Ffs-08-12.pdf&usg=AOvVaw2tkO-pt-Bdc-nXF7ss8mlJ
I understand the case where the IRS has somehow determined that the
taxpayer owes more than he or she thinks. But I'm talking about a case where the taxpayer correctly determines how much tax they owe and then
makes sure they pay that exact amount each year through a combination of appropriate withholding and/or estimated tax payments throughout the
year followed by payment of any net balance owed by April 15th.
Why would anyone do this? I don't know - perhaps to make a statement or because they have deep-rooted disagreements with the tax system or maybe
just to mess with the government in a small way.
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