RESIZING Pix

assets/hock/book/Z-unit1.p32.txt

@@ -1,45 +1,23 @@
-Example: Ramon is a U.S. Marine who has served in a combat zone since March 1, so he is entitled to
-extra time to file and pay his taxes. The 46 days between the date he entered the combat zone and the
-normal April 15 fling deadline are added to the normal extension period of 180 days, so he has a 226-
-day extension period after he leaves the combat zone. IRS deadlines for assessment and collection are:
-also suspended during any period that a US. service member is in a combat zone.
+Example: Ramon is a U.S. Marine who has served in a combat zone since March 1, so he is entitled to extra time to file and pay his taxes. The 46 days between the date he entered the combat zone and the normal April 15 fling deadline are added to the normal extension period of 180 days, so he has a 226-day extension period after he leaves the combat zone. IRS deadlines for assessment and collection are: also suspended during any period that a US. service member is in a combat zone.
 
 Penalties and Interest
 
 “The IRS can assess a penalty on taxpayers who fail to ile fail to pay, or both. The falure-
-toile penalty is greater than the failure-to-pay penalty. f someone is unable to pay all the taxes they
-owe, they are better off fling on time and paying as much as they can. The IRS will consider payment
-options for taxpayers. These penalties can be abated if the taxpayer qualifies for an administrative
-walver, or can establish that there was a reasonable cause for not paying or ili on time, Common
-penalties include:
-«+ Fallure-to-fle; When a taxpayer does not file their tax return by the return due date for
-extended due date, if an extension to fle is requested and approved).
-« Failure-to-pay: When a taxpayer does not pay the taxes reported on their return in full by the
-due date, April 15. An extension o file does not extend the time to pa.
-«Failure to pay properly estimated tax: When a taxpayer does not pay enough tases du for
-the year with their quarterly estimate tax payments (or through withholding) when required.
-«Interest on the amount due: In addition to filing penalties, the taxpayer wil also be charged
-interest on the amount due.
-
-Failure-to-File Penalty: The penalty for fling Form 1040 late i usually 5% of the unpaid taxes
-for each month or part of a month that return is late. The penalty is based on the tax thats not paid
-by the due date. This penalty will not exceed 25% of a taxpayer's unpaid taxes.
-
-I both the falure-to-fle penalty and the falure-to-pay penalty apply in any mont, the 5% failure:
-toile penalty is reduced by the failure-to-pay penalty.
-
-= 5% of the unpaid balance per month (or part of a month) for a maximum penalty of 25% of the
-
-unpaid tas. ifthe failure to file on time is determined to be fraudulent, the penalty is
+toile penalty is greater than the failure-to-pay penalty. f someone is unable to pay all the taxes they owe, they are better off fling on time and paying as much as they can. The IRS will consider payment options for taxpayers. These penalties can be abated if the taxpayer qualifies for an administrative walver, or can establish that there was a reasonable cause for not paying or ili on time, Common penalties include:
+
+1. Fallure-to-fle; When a taxpayer does not file their tax return by the return due date for extended due date, if an extension to fle is requested and approved).
+2. Failure-to-pay: When a taxpayer does not pay the taxes reported on their return in full by the due date, April 15. An extension o file does not extend the time to pa.
+3. Failure to pay properly estimated tax: When a taxpayer does not pay enough tases du for the year with their quarterly estimate tax payments (or through withholding) when required.
+4. Interest on the amount due: In addition to filing penalties, the taxpayer wil also be charged interest on the amount due.
+
+Failure-to-File Penalty: The penalty for fling Form 1040 late i usually 5% of the unpaid taxes for each month or part of a month that return is late. The penalty is based on the tax thats not paid by the due date. This penalty will not exceed 25% of a taxpayer's unpaid taxes.
+
+I both the falure-to-fle penalty and the falure-to-pay penalty apply in any mont, the 5% failure: toile penalty is reduced by the failure-to-pay penalty.
+
+= 5% of the unpaid balance per month (or part of a month) for a maximum penalty of 25% of the unpaid tas. ifthe failure to file on time is determined to be fraudulent, the penalty is
 15% of the unpaid balance per month (or part of a month) for a maximum penalty of 75% of
 the unpaid tax.
 
-+ For returns filed more than 60 days lat, the penalty shall not be less than the lesser of (1) $485
-or (2) 100% of the tax due on the return
++ For returns filed more than 60 days lat, the penalty shall not be less than the lesser of (1) $485 or (2) 100% of the tax due on the return
 
-Example: Lonny docs not Ie hl tax return on time, or request an extension, because he believes that
-he does not owe any income tax this year. When he finally gets around to filing his return, Lenny
-discavers that he owed $25 in taxes. He files his return on July 30, and pays the amount due, but his
-return is over 60 days ate. He later receives a bill with a late filing penalty of $25, which is 100% of
-the tax that was due on his return. He will also owe a small late payment penalty of $2, as well as
-interest on the amount due.
+Example: Lonny docs not Ie hl tax return on time, or request an extension, because he believes that he does not owe any income tax this year. When he finally gets around to filing his return, Lenny discavers that he owed $25 in taxes. He files his return on July 30, and pays the amount due, but his return is over 60 days ate. He later receives a bill with a late filing penalty of $25, which is 100% of the tax that was due on his return. He will also owe a small late payment penalty of $2, as well as interest on the amount due.