If you file extensions on 2005-2006-2007 tax returns and they have not been filed yet b/c of inputting?

Question

errors and missing information. What troubles do you risk with the IRS? Also, what are the penalties and fees incurred? Is there any way to have these fees waived in any way.

Answer 1

If you don't file, IRS may do it for you producing an excessive tax bill.  Penalties will be added for late filing, late payment and failure to make estimated tax payments.  The first two can be waived if you can show good reasons for late filing and payment.

Answer 2

You can't request an extension for 2005 and 2006; File your taxes immediately before IRS files for you.  Have you received any correspondence from IRS yet, if not you could received an ASFR (Automated Substitute for Return) which IRS files for you at standard deduction and usually as single and one exemption.  And if  you let IRS file you will definetely owe them.  File your own and it will be less. You can ask for abatement of penalties but your excuse must be a good one like you were in a coma since 2005 (then if you were you would have to show proof from hospital and of course you would have any wages earned in 2006 and 2007)

Answer 3

An extension to file taxes only lasts for 6 months at the most.  Even if an extension is filed, any taxes owed had to have been paid when the extension was filed.

So, for 2005 and 2006, if there is any money owed, the business is going to be subject to late filing penalties, late payment penalties, and possibly underpayment penalties.  Plus, interest accrues on the back taxes owed.  For 2007, the only penalty that may not apply is the late filing penalty if the tax return is filed by October 15, 2008.  There is a little more than 3 months left if an extension was filed.

The chances to have the penalties waived is very slim.  A business will have to prove that the tax returns were not filed due to reasonable cause.  Missing information and keying errors do not qualify as reasonable cause.  Another possible way to have penalties waived is to prove a serious financial hardship.  To prove a serious financial hardship, all of the books and records of the business must be in order.  From the information presented, this is not the case.

Answer 4

You are WAY overdue for 2005 and 2006, and the extensions have long since expired.  So for those, you are subject to late filing penalties.  For all of the years, you are subject to interest and penalties on any unpaid amounts.  You aren't likely to get the fees waived unless you can show a very good reason why you haven't filed.  Unless you've been in a coma or something, you probably can't show an acceptable reason since you are that far overdue.

Answer 5

1. You must file your tax return if you are required to file.

2. If you owe taxes, you will also pay interest and penalty.

3. If you  have a refund, you will not get it till you file. Also even if you expect a refund and IRS finds something on your tax return and you owe taxes, you will pay interest and penalty. So file.

Read this http://taxipay.blogspot.com/2008/03/auto...