May 04, 2012 (Press-News.org) The Internal Revenue Service requires that anyone receiving income from any source must file a tax return each year, with limited exceptions. If an individual does not file an income tax return, the IRS will file one for them and then send that individual the bill of the taxes owed. At first, this sounds somewhat advantageous to have the service itself prepare and file taxes, but this process has its drawbacks.
The IRS prepared-filing is in no way a good substitute for a return a taxpayer prepares and sends personally. These "ghost returns" are based only on income and the IRS does not include any deductions or credits for which a taxpayer may qualify. The IRS files a substitute Form 1040 based on reports of wages paid by an employer and statements from financial institutions for interest and dividend payments made to the non-filing taxpayer.
Once the IRS calculates income, it will then calculate the amount of taxes due. It then adds interest and a penalty for not filing. The taxpayer is then sent a bill for payment of the amount of taxes, interest, and penalties.
The IRS does not immediately prepare a substitute return for a delinquent taxpayer. The IRS first sends several letters reminding the non-filer to file their return. Only after approximately one year of non-filing will the IRS file a substitute return for that individual.
With the availability of better technology, it has become much easier for the IRS to identify non-filers. The IRS now receives an increasing amount of electronic accounts reporting many different types of income. This allows the IRS to easily track those who are receiving income but are not filing a return.
It is very unusual for a taxpayer to have no offsetting expenses, deductions, or credits to be applied to taxable income or taxes due. It is only by personally filing a return that such offsets will be used to reduce taxes. Therefore, it is important for taxpayers to complete and submit their own return to avoid the IRS filing the substitute. Furthermore, if a substitute return is filed by the IRS, it is important not to ignore it. The taxpayer will need to work with the IRS to correct it in order to avoid collection efforts by the IRS to collect the amount of taxes due under that substitute return.
Issues involving taxes and failure to pay can be complicated and it is best to seek out advice from a tax law attorney if you suspect there may be problems with your taxes.
Article provided by Law Office of Williams & Associates, P.C.
Visit us at http://www.williamslawassociates.com/
Failure to File a Tax Return: What Happens?
If an individual receiving income does not file a tax return yearly, the IRS can file a substitute return for that individual based solely on reported income resulting an exaggerated tax amount due.
2012-05-04
ELSE PRESS RELEASES FROM THIS DATE:
Four Common Estate Planning Mistakes to Avoid
2012-05-04
After creating an estate plan, it can be easy to set it aside without a second thought. However, it is important to revisit your estate plan periodically to check for hidden errors or changes in circumstance that could undermine your intent. The following examples are just a few of the numerous estate planning mistakes that can occur every day.
Naming the Wrong Beneficiary on Your Retirement Plan
Many people make the mistake of forgetting or neglecting to update the beneficiary designations on their retirement plans as their circumstances change. For instance, young ...
Proposed Changes to New York's Domestic Violence Laws
2012-05-04
People should know their rights, and that is especially true of individuals who have domestic violence charges alleged against them. Allegations of domestic violence can result in criminal charges and can also affect decisions in family court. An important part of understanding one's rights is knowing how crimes in New York are defined. Recently, state legislators proposed changes to New York's domestic violence laws that would make the laws tougher.
New York state legislators recently proposed changes to the state's domestic violence laws that would make it a felony ...
Avoid Further Troubles by Filing Past-Due Tax Returns
2012-05-04
Benjamin Franklin once wrote in a letter, "n this world nothing can be said to be certain, except death and taxes." Franklin's words capture the distain many people hold for paying taxes. Few people appreciate having to file income tax returns with the federal government, but people who fail to file returns run the risk of a variety of punishments. However, people can mitigate some of the damage by filing past due returns.
Consequences of Failing to File Returns
People who do not file income tax returns open themselves up to the possibility of several penalties, ...
Federal Tax Liens
2012-05-04
The IRS may choose to file a lien on a person's property who has failed to pay on a tax obligation. A tax lien is an encumbrance on the debtor's property that secures the government's interest in the property for the amount of the debt. Those having tax troubles should be aware of the effects a tax lien, particularly how tax liens affect homes, and how to discharge a tax lien.
Effects of a Tax Lien
After the IRS determines that a person owes taxes and has not paid, the IRS notifies the person of his or her obligation. If the person still does not pay, the IRS will ...
Divorce Survival Tactics
2012-05-04
Divorce is a stressful time in people's lives. Experts have ranked it among losing a job, the death of a loved one and surviving a severe accident as one of the most stressful events a person can experience. Some people seem to handle the divorceexperience better than others, and that is usually attributable to the fact they employed some survival tactics to help them get through it.
Remain Calm
Divorce is an emotionally-charged event, but people will come through the process in a much better position if they can learn to table their emotions and think as rationally ...
Paul Kirley Fuels Visual Experiences Connecting Art, People and Places at Artspace Warehouse
2012-05-04
Kirley was born in Massachusetts to a family of designers and artists whose connection to architecture and landscape greatly influenced him at an early age. He discovered photography and 1950's abstract expressionist painting in his teens. In the fall of 1987 Paul moved to California to attend the Art Center College of Design. During this period he began to develop a collage style of work that merged his love of photography with a passion for painting.
Blending paint and photographic compositions together on a single picture plane, Paul seeks an integration of the two ...
Injured Service Members Enjoy Day of Relaxation and Rehabilitation with Former NASCAR Driver Ward Burton
2012-05-04
On Friday, May 4, Ward Burton Wildlife Foundation (WBWF) and Freedom Alliance are set to cohost the American Hero Event in Clover, Virginia. This event will provide American Heroes a healing experience to help them cope with their mental and physical injuries they sustained from serving our country during the last several years at war. This event is not open to the public.
"Through this event our goal is to show our guys a great time and make them feel good about themselves," says Ward Burton, former NASCAR driver and winner of the Daytona 500. "The outdoors ...
Hansons Windows to Enhance Customer Experience in Malls
2012-05-04
In an effort to use technology to reach customers, Troy, MI-based Hansons Windows will soon be introducing interactive kiosks in Metro Detroit malls, where potential customers can sample roofing, windows, and siding.
"Along with our very successful marketing efforts and state-of-the-art online presence, we have added kiosks in the area's busiest malls, making the selection process easier for our customers," said Brian Elias, owner and president of Hansons Windows.
Locations featuring kiosk stations include Oakland (Troy) and Lakeside (Sterling Heights) ...
Gifts of Love and Devotion Just Added Three Cross Cufflinks with Personalized Case to Their Line of Personalized Confirmation and First Communion Gifts.
2012-05-04
Gifts of Love and Devotion has just added three Cross Cufflinks with Personalized Cases to their line of Personalized Confirmation Gifts and First Communion Gifts. These elegant cross-shaped cufflinks are ideal for weddings, religious ceremonies, or just everyday wear. Contemporary in style, they are tucked in a handsome personalized keepsake box made of lightweight plated polymer with a lovely black satin lining. They make a great gift idea for someone receiving their First Communion, Confirmation, or any other special religious occasion!
The Silver Cross Cufflinks ...
Homeowners Thinking Outside of the Box when it Comes to Remodeling
2012-05-04
It might be time to say good-bye to the traditional home as more and more homeowners are thinking outside of the box - sometimes literally - and are embracing new concepts and design ideas to make their living space more organic, efficient and personalized, according to Whitestone Builders (http://www.WhitestoneBuilders.com), a company that has been building luxury homes in Houston.
"Thanks to new materials, new technology and a trend toward a 'greener' lifestyle, homeowners are discovering creative uses for formerly under-used spaces and employing special features ...
LAST 30 PRESS RELEASES:
School-based program for newcomer students boosts mental health, research shows
Adding bridges to stabilize quantum networks
Major uncertainties remain about impact of treatment for gender related distress
Likely 50-fold rise in prevalence of gender related distress from 2011-21 in England
US college graduates live an average of 11 years longer than those who never finish high school
Scientists predict what will be top of the crops in UK by 2080 due to climate change
Study: Physical function of patients at discharge linked to hospital readmission rates
7 schools awarded financial grants to fuel student well-being
NYU Tandon research to improve emergency responses in urban areas with support from NVIDIA
Marcus Freeman named 2024 Paul “Bear” Bryant Coach of the Year
How creating and playing terrific video games can accelerate the battle against cancer
Rooting for resistance: How soybeans tackle nematode invaders is no secret anymore
Beer helps grocery stores tap sales in other categories
New USF study: Surprisingly, pulmonary fibrosis patients with COVID-19 improve
In a landmark study, an NYBG scientist and colleagues find that reforestation stands out among plant-based climate-mitigation strategies as most beneficial for wildlife biodiversity
RSClin® Tool N+ gives more accurate estimates of recurrence risk and individual chemotherapy benefit in node-positive breast cancer
Terahertz pulses induce chirality in a non-chiral crystal
AI judged to be more compassionate than expert crisis responders: Study
Scale-up fabrication of perovskite quantum dots
Adverse childhood experiences influence potentially dangerous firearm-related behavior in adulthood
Bacteria found to eat forever chemicals — and even some of their toxic byproducts
London cabbies’ planning strategies could help inform future of AI
More acidic oceans may affect the sex of oysters
Transportation insecurity in Detroit and beyond
New tool enables phylogenomic analyses of entire genomes
Uncovering the role of Y chromosome genes in male fertility in mice
A single gene underlies male mating morphs in ruff sandpipers
Presenting CASTER – a novel method for evolutionary research
Reforestation boosts biodiversity, while other land-based climate mitigation strategies fall short
Seasonal vertical migrations limit role of krill in deep-ocean carbon storage
[Press-News.org] Failure to File a Tax Return: What Happens?If an individual receiving income does not file a tax return yearly, the IRS can file a substitute return for that individual based solely on reported income resulting an exaggerated tax amount due.