Are you prepared for tax season? If not, get started with Feinstein Tax and Accounting. We offer tax preparation services to help you file your taxes correctly and on time. We also provide bookkeeping and notary services to take care of all your financial needs. Our small and attentive company pays close attention to detail, so you can rest assured that your taxes are in good hands. Keep reading to learn more about the pitfalls of not properly filing your taxes.
Risking a Failure to File Penalty
A big danger of not filing your taxes on time is being subject to a failure to file penalty. This penalty represents around five percent of your unpaid tax liability for each month your return is late and up to 25% of your total unpaid taxes. If you’re due a refund, there’s no penalty for failure to file but if you owe money, you could be subject to the failure to file a penalty.
Being Accused of Tax Fraud
If the IRS believes you’ve tried to evade paying taxes, even if it was not properly filed, you could be accused of tax fraud. This is a serious offense that can result in heavy fines and even jail time. If you’re ever contacted by the IRS about an audit or investigation, it’s important to seek out professional help from a tax advisor or tax accountant immediately.
Prolonging Your Tax Return
If you’re not careful, tax season can drag on for months. This is especially true if you owe money to the IRS and need to set up a payment plan. To avoid this, be proactive about your taxes throughout the year and make sure you’re keeping good records. If you have a complex tax situation, it’s also a good idea to seek out professional help from a tax advisor or tax accountant.
Risking Negligence Penalty
If the IRS determines you underreported your income, accident or not, they can apply a tax penalty called negligence penalty. The fee is usually around 20% of the tax owed and can be even higher if the IRS believes there was fraud involved. At Feinstein Tax and Accounting, we understand how complex taxes can be. That’s why we offer tax and bookkeeping services to help you file your taxes correctly and on time.
Learn more about our Feinstein Tax and Accounting services today!