Late Filing and Late Paying Penalties

April 15, the personal tax deadline is long gone and still there are many who have done their duty. If you owe a refund and you did not file it on time, you are safe. But, if you owe tax to the IRS and did not file it on time, you are sure to invite late filing and late payment penalties on to yourself.

Late Filing Penalty:
When you do not file your tax on time, you will have to pay 5 percent of the unpaid taxes for each month or part of a month that that you delay in filing as penalty. Late filing penalty normally won’t exceed 25 percent of your unpaid taxes. Read More Late Filing and Late Paying Penalties

When to Plan for your Child’s Financial Future?

There is this ‘Someday’ concept that we keep applying for almost all long term financial goals. “Someday I will buy a house of my own”, “Someday I will go for a world tour”, and when it comes to saving money for this “Someday” we never ever start it unless there is some pushing need.  And one fine day, after it gets too late for saving, you just while away the rest of the time complaining about how you wasted your time or how you never got a chance to save money for your desire. Financial planning experts say, “Your money saving goal starts only when you actually start putting your efforts towards it. You just can’t expect things to happen just because you want it to happen- you will need to give your hard work.” Read More When to Plan for your Child’s Financial Future?

IRS Phone Call Scam Haunts!

The IRS is running several awareness campaigns to inform taxpayers about phone call tax scams that are highly active across the nation now. As the tax day nears, more scammers seem to haunt taxpayers with different tricks every time. Though these fake calls are common during tax season, and people are well informed about these baits, it has turned almost unavoidable for taxpayers to fall prey.  Tricksters calling homes with bogus IRS badge numbers are in the rise off late.  It has become harder than ever to stay alert while we are at the last few days of tax deadline. Read More IRS Phone Call Scam Haunts!

Letter from the IRS- Now What?

If you had received a letter from the IRS it could be a simple verification or a big issue that you have to deal with. Whatever it is, we thought of letting you know about a few things to remember that could help you handle any situation with ease. There is nothing panicky if one shows up in your mailbox form them. IRS is available to give heed to your concerns and tax mistakes, so just be sure and stay informed to take the right corrective measures that will get things straight. Read More Letter from the IRS- Now What?

Tax Extension and Affordable Care Act Exemption

Affordable care act is one of the latest headaches for many taxpayers who already find tax season tedious and demanding. People had been running from corner to corner in hope to get enrolled in some eligible health coverage. Not because they just want coverage but to escape the shared responsibility payments which will only add to their already hefty tax liability.

On the other hand, there were people who found it hard to even file their tax on time and have moved on to file form 4868 to extend their filing for another 6 months. But what good does it do to the Affordable Care Act payment. Can filing a tax extension buy some time for the penalty it imposes for not having a valid health insurance during that tax year? There are lot of other doubts and speculations around this new topic but let’s stick to what good can tax filing extension do to the health care penalty in this post.
Read More Tax Extension and Affordable Care Act Exemption