Gaona Tax & Accounting

#morethanjusttaxes, gaonatax.com

#morethanjusttaxes

DID YOU KNOW: The IRS will not impose penalties under section 6721 or 6722 on eligible educational institutions with respect to Forms 1098-T, Tuition Statement, required to be filed and furnished for the 2016 calendar year under section 6050S if the institution reports the aggregate amount billed for qualified tuition and related expenses on Form 1098-T instead of the aggregate amount of payments received as required by section 212 of the Protecting Americans from Tax Hikes Act of 2015. HOWEVER, this penalty relief does not apply to any other failure subject to a penalty under section 6721 or 6722.

Filing Late and Paying Penalties: April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If you are due a refund there is no penalty if you file a late tax return. If you owe tax, and you failed to file and pay on time, you will most likely owe interest and penalties on the tax you pay late. Here are some facts that you should know. 1. Two penalties may apply. One is for filing late and one is for paying late; not to ment...ion the interest on top of the penalties. 2. Penalty for late filing range from $205 and as much as 5% of your unpaid taxes each month up to a maximum of 25 percent. 3. Penalty for late payment is generally 0.5 percent of your unpaid taxes per month. It can build up to as much as 25 percent of your unpaid taxes. 4. Combined penalty per month. If both the late filing and late payment penalties apply, the maximum amount charged for the two penalties is 5 percent per month. 5. FILE EVEN IF YOU CAN'T PAY! Filing on time and paying as much as you can will keep your interest and penalties to a minimum. If you can’t pay in full, getting a loan or paying by debit or credit card may be less expensive than owing the IRS. If you do owe the IRS, the sooner you pay your bill the less you will owe.