The Internal Revenue Service (IRS) has warned taxpayers who do not fulfill their tax duties on time that they may face a penalty. In fact, there are four major reasons why a taxpayer may face a penalty, which you need to know about.
First Reason: Not Filing Tax Returns on Time
One of the most common reasons is that you may face a penalty if you do not file your 2024 tax return on time. The IRS allows you to file your tax return from January 27, 2025, to April 15, 2025. This means that you have enough time to file it. If you need more time, you can make the tax payment and then apply for an extension of time.
Second and Third Reason: Not Paying Taxes and Not Filing Correctly
To avoid penalties from the IRS, make sure that you pay all your taxes before the stipulated time and it is done correctly. This will depend on the type of tax duty you missed and the penalties that apply. For example, there may be the following types of penalties:
- Accuracy-Related Penalties
- Failure to Pay
- Failure to File Returns
- Incorrect Information Returns
- Failure to Deposit
- Incorrectly Claimed Refunds or Credit Penalties
- Out-of-Possessor Checks
- Tax Preparer Penalties
- International Information Reporting
- Underpayment of Estimated Tax by Individuals or Corporations
If you want to avoid penalties from the IRS for any of these reasons, you must pay taxes correctly and complete everything on time.
Fourth Reason: Incorrect and Untimely Information Returns
The IRS also warns about another reason, that is, if the taxpayer does not file an accurate and timely information return, they may still face penalties. The taxpayer must make sure that he is submitting all the required information returns correctly and on time.
Measures to avoid penalties
Taxpayers can take the following measures to avoid penalties:
- File accurate 2024 tax returns
- Pay taxes ahead of time
- Submit all the information on the return on time
Those who want extra time can apply for an extension of time by paying their taxes now. For this, they can visit the IRS website.
Conclusion
To avoid penalties from the IRS, it is important that you file your tax returns on time, pay taxes and submit all the required information on the return on time. If you feel that you need extra time, you can apply for an extension of time. Completing your tax duties on time and correctly can not only help you avoid penalties but also keep your financial life safe.
FAQs
Q. What happens if I don’t file my tax return on time?
A. If you don’t file your tax return on time, you may face a penalty from the IRS.
Q. Can I get more time to file my tax return?
A. Yes, you can apply for an extension by paying your tax liability before the deadline.
Q. What penalties can I face for failing to pay my taxes?
A. Penalties may include accuracy-related penalties, failure-to-pay, or failure-to-file penalties.
Q. How can I avoid penalties from the IRS?
A. Ensure you file accurate returns, pay taxes on time, and submit required information returns.
Q. When is the deadline to file my 2024 tax return?
A. The deadline to file your 2024 tax return is April 15, 2025.