| Filing income tax returns and filling the form is a highly | | | | Prompt Filing of Income Tax Returns |
| complex task. In the US, this form has to be filled to | | | | Prompt filing of income tax returns is essential so file |
| obtain a refund of the surplus tax that was paid. One | | | | for an extension in case you are delayed. This |
| is typically entitled to get a refund if the tax paid | | | | extension pertains to the filing time and not the paying |
| exceeds the liability that is actually owed. The refund is | | | | time. |
| usually directed to the tax payer's next year's taxes. | | | | A taxpayer will incur a penalty if it takes years to clear |
| The refund amount can also be deposited directly to | | | | off the tax amount. In this case, a 'payment plan' can |
| the tax payer's bank account or in the form of a | | | | be requested from the IRS. A payment plan is |
| check at the specified mailing address. | | | | basically the provision to pay one's taxes in |
| Impact of Failure to File Income Tax Return | | | | installments. |
| A tax return needs to be filed if the gross annual | | | | However, if it seems feasible to pay your taxes within |
| income of a person exceeds a certain amount. This | | | | a few months' time, go ahead and file for an extension |
| amount is fixed by law and is subject to change on an | | | | along with a partial payment. The remaining amount |
| annual basis. Any failure or omission to file federal | | | | can be paid till the extension date. The penalty will still |
| income tax returns is considered a serious federal | | | | be there, but you can avoid the convenience fee |
| crime under the section 7203 of Title 26, U.S.C. | | | | (when paying through a credit card). You can also set |
| This also becomes a punishable act if it is proved | | | | up the fee for the installment plan. |
| beyond doubt that the person was liable under law to | | | | The income tax returns are viewed by many people |
| file for a tax return and failed to do so deliberately. | | | | as a strategy to get one's money back. Still, getting a |
| Further, the offence is triggered if there is a failure to | | | | refund is definitely better than running into legal trouble |
| make the return within the prescribed time. | | | | for 'owing money' to the state. |
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