In certain cases, reasonable cause may apply to a mistake if additional facts and circumstances show that you tried to comply with tax law. You're responsible for making sure your tax returns, payments and deposits are correct and on time. This includes filing requirements, deadlines and amounts you owe. You're responsible for knowing or getting advice on how to file returns and pay or deposit taxes on time. You should know what your tax preparer files and get proof that your return or payment is sent on time. You're generally responsible for complying with tax law even if someone else handles your taxes. The following factors don't generally qualify as valid reasons for failure to file or pay a tax on time: System issues that delayed a timely electronic filing or paymentįor more information see Policy Statement 3-2.Death, serious illness or unavoidable absence of the taxpayer or immediate family.Fires, natural disasters or civil disturbances.You may qualify for penalty relief if you demonstrate that you exercised ordinary care and prudence and were nevertheless unable to file your return or pay your taxes on time.Įxamples of valid reasons for failing to file or pay on time may include: Reasonable cause doesn't apply to certain penalties such as the estimated tax penalty.įor businesses, the reasons apply to the person with authority to submit the return, deposit, or tax. Reasons that qualify for relief due to reasonable cause depend on the type of penalty you owe and the laws in the Internal Revenue Code (IRC) for each penalty. Reasonable cause is determined on a case by case basis considering all the facts and circumstances of your situation. How to Appeal a Penalty Relief Decision.You may qualify to have certain penalties removed or reduced if you acted with reasonable cause and in good faith.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |