Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
For the week of
August 7, 2000
So you haven't filed your federal income tax return?
The most common reason for not filing an income tax return
is the lack of money to pay the balance due to the government.
You should file your return even if you can't pay all you owe. File by the due date of your return and pay as much
of what you owe as possible. By filing on time, you avoid the late filing penalty of 5% per month, up to 25% (five
months). By paying as much of the amount you owe as possible, you also reduce the amount of interest and late payment
penalty that you will owe.
If you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty of one-half of
one percent per month, up to 25 percent. The one-half of one percent rate increases to one percent if the tax remains
unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy.
If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. However,
you will be charged interest and a late payment penalty on the tax not paid by April 15, even if your request to
pay in installments is granted. Consider a loan from your bank; you may pay less than if you make installments
to the IRS.
Most late filers don't sleep well at night. If you haven't filed your return, the problem will not go away by itself.
File your return and inform the IRS of your current financial condition. Even though it may cost you some interest
and penalties, you will probably sleep better.
We will be happy to assist you with all your tax filing and planning matters. Please give us a call. If you are
not a current client of our firm, call anyway. We will see to it that you pay no more than the law requires.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list
to receive other tax-cutting information from time to time, please contact our office. We're here to help.
