IRS Tax Relief 2010 – As it may seem odd for some, file your tax return even if you are unable to pay as the savings will be worth it in the end. The IRS can impose to common penalties which are FTF (Failure to File) and FTP (Failure to Pay).
If you did not file your tax return on time, usually by April 15th for the previous year ending December 31st, then it falls under failure to file.
If you need an extension, you can file an IRS form 4868 to get a six month extension. However, just filing this form does not necessarily mean you will get it. You may be turned down for some of the following reasons:
You believed that you would possibly owe IRS taxes on the return in question.
You didn’t have sufficient taxes withheld from your paycheck or made no effort to meet estimated tax payments.
If you knew you owed the IRS taxes and listed a zero as your tentative liability on your extension form.
IRS Tax Relief 2010 penalties for the Terrible Twos: Failure to File and Failure to Pay :
You can avoid the penalty for FTF simply by filing your tax return on time which would include any extensions as well. Even if you cannot pay the entire amount due, file anyway. Unless you do the following, the FTP penalty will be assessed:
Filing a valid extension with your balance due amount can provide you an extra six months to come up with the money.You would need to pay at least 90% of the balance due by the original due date of the tax return which is usually by April 15th.
File the tax return by the extension due date, and…
Make sure you pay the remaining 10% balance on or before the extended due date.
IRS Tax Relief 2010 – You may still be eligible for penalty abatement even if you have failed to file your return or pay your taxes on time. You will need to prove good cause as to why you didn’t pay or file to gain approval.