If you own your own busness ,what are the penalties for not filing for 2 years . I didnt make enough to have to pay in but scared that i may get in deep trouble.
2006-11-21 15:29:02 · 3 answers · asked by Cindy B 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you didn't make enough to pay tax, then you wouldn't be penalized if you file late. But if you made much of anything, you probably owed tax - even if you didn't owe income tax, you probably owe self-employment tax.
Go ahead and file. You'll owe the original tax due, plus interest and possibly penalties, but you won't be in major trouble. If you wait until they catch up to you, you'll just make things worse.
If you can't pay all that you owe right away, the IRS will set up a payment plan.
2006-11-21 16:15:01 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
File the returns as soon as possible. Penalties are always based on the amount of tax due with a return. If you don't owe then there would not be any penalty. You are always better filing in order to get the three statute of limitations running. If you don't the the limitations period does not start running.
2006-11-21 22:43:56 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
file..
worry later.
better that way..
2006-11-21 15:37:34 · answer #3 · answered by cork 7 · 0⤊ 0⤋