Failing to file taxes, and more specifically, owing taxes for the year in which the return has yet to be filed, often leads to a number of different penalties assessed by the IRS. The Federal Government of the United States often grants both individuals and businesses a valid extension when requested, which allows them more time to file a tax return. However, when an extension is not requested, or one is requested, yet a tax return and moneys due are not submitted by the new deadline, serious problems can arise that are best dealt with by an accounting or legal professional.
What Constitutes a Failure to File?
To put it simply, a failure to file occurs when a tax return is not submitted to the IRS by the deadline set forth by them every year. This is usually April 15th, but it can be extended for six months. Companies and individuals can both request an IRS extension, which pushes back that filing deadline. While this gives them more time to compile documentation and pertinent return information. In some cases, that deadline is also missed, that becomes what is known as a failure to file, and penalties are assessed by the IRS according to the guidelines that they have put into place.