I find it hard to believe that I actually have people asking me that question this year. Given the well advertised IRS labor force reductions, and the ridiculousness of people saying that the agency will be closed, many are wondering if they need to file.
So let’s separate fact from fiction.
The Internal Revenue Service is a collection agency. They collect as much money as they can so that Congress can waste it.
Like it or not, that’s how things are. The agency will never be abolished for two reasons.
1 – Tariffs could never replace our current system of graduated income taxes. Given their unpopularity, the new administration is already backing off of many of its proposed tariffs.
2 – Every time a flat tax like a national sales tax has ever been proposed, it went the way of the Dodo Bird. Opponents say that it puts too much of a tax burden on the lower class.
The IRS and our current system of taxation isn’t going away, but there’s something else that many “Tax Protestors” need to understand. No matter how many people are or aren’t working at the Service, their computer systems won’t stop running.
It’s their computer systems that pump out the letters that chase you. And if you don’t file your return within a certain amount of time, your case will be assigned to an IRS Agent.
And no one wants to get that dreaded knock on the door.
Penalties
There are two penalties to also be concerned about, which are the Failure To File and Failure To Pay Statutory Additions. Both are assessed on returns that are filed late and max out at 25%.
And it’s that same computer system that assesses these penalties. So unless you want to increase the amount you owe by 50%, I’d suggest that you get your returns filed.
Let me leave you with this…
C Corp, Estate, Trust, and Personal Income Tax Returns are due Tuesday, April 15th. We’re already rather backed up. So if you would like your returns completed timely, we’ll need the answers to your final questions by April 1st.
If they come in after that date, we won’t be able to guarantee a timely completion of your return. So please get your work into us today.
As always, we’ll be completing extensions on all of the outstanding returns beginning April 5th. This provides an automatic six month extension to file the “paper” return.
This doesn’t extend the due date of any payment that might be due with the return when it is completed. That due date remains April 15th.
If you’d like to make a deposit on either your Federal or State Return, please contact our offices. That deposit will be the only way to avoid a Failure To Pay Penalty when the return is completed.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.