TAX SECRET #1
FILE ALL IRS REQUIRED TAX RETURNS ON TIME!
This might sound brain-dead simple, but when people don’t have the money to pay their taxes, a large percentage of taxpayers delay and do not make the IRS filing deadline. Even if you don’t have the total amount due, send a $1.00 and file your taxes on time!
So many people do not realize that the IRS charges you a penalty of up to 25% FOR JUST FILING YOUR TAX RETURNS LATE. That’s right, 25% of what you owe. This includes Individual tax returns and payroll tax returns.
What people do not know is if they file their tax returns on time they can avoid the 25% penalty even if they do not send in the money, which is owed on their tax returns. Sending “as much as you can” is better than nothing and shows a little good faith. But definitely do not “not file” …the IRS doesn’t forget and they will come back to contact you later and you’ll owe a lot more.
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