Tax Penalties
The County officials then add all the assessed values of the property together in a county. Further they subtract the applicable deductions in order to determine the net assessed value of the county.
Filing a late return will cost you five percent in penalties per month, reaching a maximum of twenty-five percent. If you file your return on time, but dont actually pay the tax, your penalty will be assessed at one half of a percent for every month that you failed to pay the taxes. Next, there is the accuracy related penalty. The Internal Revenue Service will hit you with this one when they believe that you underpaid your taxes because you disregarded or ignored tax regulations. They will also assess this penalty if you understated your tax liability. This penalty is twenty percent of what you owe.
If you just plain forgot, you might still convince the Internal Revenue Service that your forgetfulness is reasonable cause to lower or eliminate the interest, fines, and penalties added to your past due amount. Causes like unavoidable absence, serious illness, or death are good reasons to suggest reasonable cause.
Reasonable cause, under Internal Revenue Standards can apply if you were ignorant of the law. If you or the Internal Revenue Service made a mistake in calculating the amount of taxes you owe, you could apply reasonable cause.
One of the most frequent errors in dealing with the IRS is failing to file a return. Everyone living in the United States and earning an income here, is subject to filing a tax return, if your income is above certain minimum thresholds. Many taxpayers mistakenly believe that, for some reason or another, they do not reach filing status. Failure to file, when so required, will attach penalties and interest to whatever taxes you owe. These penalties and interest can accrue over time to the point where they eclipse the initial tax liability. If you fail to file when required to do so, the IRS has the option of filing a return for you. You are then liable for any taxes the IRS says you owe on this return.
If you received incorrect advice from a tax expert, you can claim reasonable cause. If you received advice in error from The Internal Revenue Service, you have a claim for reasonable cause. If you experienced a disturbance beyond your control like a natural disaster, fire, or casualty, these events make for a reasonable cause claim. Experiencing an act of God justifies a reasonable cause argument.
The furniture that youre using part time for business purposes can also be partially tax deductible. You get this deduction by depreciating a portion of the total cost of the furniture over a period of years.