think i'm in trouble?

Question

i've been contacted by the IRS that i need to file for 2003 and 2004. The problem is, after doing them, i found out we owe in $1700 for 2003 and are owed $3600 for 2004. How much are the penalties and fines for not paying in for 2003?

Answer 1

if you file, and owe, you can work out a payment schedule with them. If you DON'T file, penalties and interest will continue to accrue and at some point they will begin to, are you listening? they will begin to SEIZE YOUR ASSETS. things like bank accounts, vehicles, real property and sell them off until the debt is satisfied.

It's easier to take care of it than it is to ignore it and "hope they'll forget"

Answer 2

Hard to tell, but they will have added up considerably by now. Penalty for filing late is usually 5% for each month or part of a month that a return is late, but not more than 25%. For returns over 60 days late, the minimum failure to file penalty if $100 or 100% of the tax owed. Failure-to-pay penalty is 1/2 of 1% per month or part of a month after the due date - 36 months late would be another 18%, so penalties would probably total 43% of the $1700, or $731. Interest would be in addition to that.

Answer 3

The maximum penalty is 25% of the amount of tax due. Add to that the interest and you are good to go.

If your IRS tax return is more than 60 days late, the minimum IRS tax penalty is the smaller of $100 or 100% of the tax owed.) 5% per month of the net tax due the IRS
(maximum 25%)

Late tax payments to the IRS: 0.5% per month of the unpaid tax due the IRS (maximum 25%)
(The 0.5% rate increases to 1% after the IRS issues an IRS tax notice of intent to levy)

Notwithstanding all of the above, if I had to owe money to anybody, I'd rather it be the IRS. They are great to work with, and almost make being reamed out FUN!!

Answer 4

I think you will be kissing most of the refund for 2004 goodbye before you ever see any of it. Work with the irs on this, don't try to avoid or hide anything form them. You may also have to do the state taxes for those years as well. Good luck.

Answer 5

here in Canada there is a % penalty on the taxes that were owed and I believe the amt. of time it was owed as well. Not sure about the US system

Answer 6

im gonna go through it soon too and iall i know is i think they give you time to pay so dont stress

Answer 7

If your rich no prob. but if your not your dead.
but its 2 late.............YOUR DEAD