What Time Is Suitable To File A Return For You?

What Time Is Suitable To File A Return For You?

The first legal tax payment for the Americans was enforced in the 1860s when Abraham Lincoln was the president. As the civil war proved to be very expensive, the government decided to impose a legal requirement upon the citizens for paying income taxes.

At the beginning, 15 April was not the deadline for filing your returns. At the time it was set for 1 March. In 1918, the date was changed to 15 March. Finally in 1954, the date was fixed at 15 April, and since then it … Read more at 2011 Tax.

What Time Is Suitable To File A Return For You?

The first legal tax payment for the Americans was enforced in the 1860s when Abraham Lincoln was the president. As the civil war proved to be very expensive, the government decided to impose a legal requirement upon the citizens for paying income taxes.

At the beginning, 15 April was not the deadline for filing your returns. At the time it was set for 1 March. In 1918, the date was changed to 15 March. Finally in 1954, the date was fixed at 15 April, and since then it has been in force. Now, it’s been just over a 50 years and this date has not been changed again. But the possibility of revising this date again cannot be ruled out.

It’s a requirement for every individual taxpayer to file tax returns by 15 April or at least Form 4868 must be filled to take an extension. Legal as well as corporate firms are expected to file tax returns by 15 March, or at least they have to file for a date extension. This extension provides an extended amount of time to pay the taxes and file your returns but you have to pay some interest. Therefore, failing to prepare your taxes on time means that you will have to pay a penalty for your untimely behavior.

After World War 2, the individual taxpayer and the corporate world used to share the tax burden equally. But now, the individual taxpayer is more heavily burdened. Due to public outcry and general protests by the common people, the American government officially cancelled the income tax law in 1867, and during the period from 1868 to 1913, most of the government revenue was generated through selling of wine, beer, tobacco, and liquor.

It was an interesting period around 1918 when eventual taxation rules were formulated in America. Till then, it was the sale of alcoholic beverages which brought in the maximum government revenue. After the new constitutional amendment of 1919 passed by the Congress which made selling and manufacturing alcohol and alcoholic product in the country illegal, revenue generation became a major concern. They then came up with the idea of income tax. During Prohibition, the revenue agents worked hard to track down the bootleggers rather than tax evaders; the tax load started becoming heavier over time for the individual taxpayers.

“New Deal” era began with the passing of the “1942 Revenue Act”. Since then there have been phenomenal increases in the government expenses, power, and control; and now the big-budget American government is supported by the individual taxpayers. More then 10 per cent of the earnings of every individual is consumed by it and through the Social Security Administration, it can consume even more. There is no other relief mechanism in view at present.

With 4 main divisions, namely, the Wage and Investment, the Large and Mid-size Business, the Small Business Self-Employed, and the Government Entities and Tax Exempt, the IRS takes the responsibility of all tax regulations in the country. Each division has well-defined responsibilities as per their own specialty.

Tax and Your Well-Being

Tax and Your Well-Being

Tax issues and tax problems are some of the very threatening things to your well- being. There are three common mistakes many people make to find trouble with the IRS. These people delay needlessly. They try to exemplify themselves. They normally would appoint some inefficient agents for their work and finally fall into circumstances where they would need more help.

A tax attorney provides the relevant services in such situations, e.g. penalty abatement petitions, offer in compromise cases, business strategy sessions and full audit representations. They also provide help in preparation and tax return filing. … Read more at 2011 Tax.

Tax and Your Well-Being

Tax issues and tax problems are some of the very threatening things to your well- being. There are three common mistakes many people make to find trouble with the IRS. These people delay needlessly. They try to exemplify themselves. They normally would appoint some inefficient agents for their work and finally fall into circumstances where they would need more help.

A tax attorney provides the relevant services in such situations, e.g. penalty abatement petitions, offer in compromise cases, business strategy sessions and full audit representations. They also provide help in preparation and tax return filing. Get help from the tax attorney to save on your taxes, to stop giving extra to the IRS, to settle your property-related issues and acquire installment agreement, to lessen your interest amount and penalties, and so on. With the help of a good IRS tax attorney, you can attain very favorable settlement of issues related to taxes, and also you can lower your tax liability significantly. The “offer in compromise” program from IRS helps the taxpayers settling down their debt in taxes.

What is the offer in compromise program from IRS?

This program helps to lessen your tax liability to a significant extent if you can prove you’re unable to pay your taxes. Looking at your affordability, IRS will issue an order so that you can pay a few pennies for every dollar that you owe. This is in fact a very nice strategy most taxpayers use; and once done properly, it saves a lot of money. But you have to be extra careful. A professional having adequate knowledge of all IRS procedures must be hired. This professional will be able to find out the least amount the IRS will charge from you. An offer that is not correctly submitted with necessary documentation may be rejected and finally you might have to pay a lot extra.

This “offer in compromise” can really save you huge money. Do you have the idea that there is only limited time with the IRS for collecting back taxes? The professional tax attorney can determine when the time limit of the IRS runs out for collecting taxes. In majority of the cases, there is very small amount of time in the hands of the IRS for collecting unpaid taxes. A careful evaluation of exactly when this time runs out is necessary. Then you may be saved. In case the time period has already run out, or it is going to run out soon, all your problems might end.

Using certain delaying tactics, the time limit of the IRS may be made to run out. As soon as the IRS goes out of time, all their collection actions have to stop.

The IRS has to give you back all your property rights.

Failing to file your tax returns

There could be many reasons why many people cannot file their income tax returns on time. Even though there are certain innocent reasons, the fact in majority of cases is that they cannot afford their taxes.

It becomes difficult getting back to the system once this happens. Suppose you filed for 1998. Then you didn’t file for 2000 as you couldn’t afford to pay your taxes. Afterwards in 2001, you were afraid to file again. So since then you have not been filing your returns. Is there anything you can do now?

It is a criminal offence to not file your tax returns. But nobody so far has been prosecuted criminally who has filed back returns voluntarily before getting caught. The key is to file before being caught by them.

IRS penalties

The penalties of IRS may be even 100 percent to 150 percent of original unpaid taxes. The extra penalties are sometimes so high that it becomes truly very difficult to pay back the whole balance.

The penalties imposed by the IRS are meant for punishing the rule-breakers. But the IRS can forgive you and save you from paying the extra. You need to give a convincing explanation to the IRS, requesting not to punish you as you were not guilty.