Wednesday, January 30, 2013

IT IS COSTLY TO OWE THE IRS!

If you owe the IRS and fail to file a return by the deadline, you will have to pay a Failure to File penalty, a Failure to File penalty and interest on the balance due. By timely filing the return, you can avoid the Failure to File Penalty. Balance due returns can be electronically filed, with or without a payment.

FAILURE TO FILE PENALTY 1. This penalty only ap...plies if you have a balance due. If you are eligible for a refund, there is no penalty.
2. Penalty is 5% of the amount due each month the return is late, up to a maximum of 25%.
3. If your tax return is more than five months late, simply multiply your balance due 25% to calculate the penalty.

FAILURE TO PAY PENALTY
1. PENALTY IS 0.5% of the amount you owe for each month the tax is not paid in full.
2. There is no maximum limit to the Failure-to-Pay penalty.
3. The penalty is calculated from the original payment deadline (April 15) until the balance due is paid in full. The extension to October 15 is only an extension to file, not an extension to pay.

INTEREST
The IRS 2012 interest rate on underpayment of tax is 3%.
Interest is calculated for each day your balance due is not paid in full.

Note: An extension of time to file or pay does not change the date for computing interest or the penalty for filing late.

www.advancetaxrelief.net

ADVANCE TAX RELIEF LLC - WE SOLVE TAX PROBLEMS
8449 W. Bellfort, Suite 356.
Houston, TX 77071

Phone: (713)300-3965
Fax: (713)300-3963
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