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Taxes are not penalties...taxes are the percentage of our income we pay the IRS to help fund state and federal programs. Penalties are the amount of money added to the taxes which are owed for things like Failure to File, Failure to Pay, Under-reporting your income on a federal tax return, etc. If these things occur outside the guidelines set forth by the US Tax Code there are penalties (like fines for not returning a book to the library on time). Please do not confuse the two. Although sometimes taxes feel like penalties they are clearly two different things.
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∙ 11y ago
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What is the accounting journal entries for penalties and interest an taxes?
The accounting journal entries for penalties and interest on taxes will go in the debit and credit columns. You debit the expense account and credit the liability account until the penalties and interest is paid.
What would happen if you didn't pay taxes?
You would probably end up in prison. Or, you could be heavily fined, with added penalties, and forced to pay back taxes.
What if you don't file income taxes?
Eventually the IRS (or state tax board) will notice, do your taxes for you (usually extremely badly - in their favor, of course), and send you a letter demanding payment of the taxes along with interest and penalties.
What happens if you don't file taxes by the deadline?
If you don't file your taxes and are due a refund, the U.S. Treasury simply keeps your "donation." However, if you owe additional tax, file your return right away. The penalties for not filing are much higher than the penalties for not paying, and the longer you wait, the worse it gets. Please see the related link for information on the penalties for not meeting the deadline.
What are the penalties for owing $10,000 in back taxes to the IRS, for 2 years?
It is going to depend on if they are personal or business taxes, and it will depend on how late you are in filing for the late period or extension period.
What is the accounting journal entries for penalties and interest an taxes?
The accounting journal entries for penalties and interest on taxes will go in the debit and credit columns. You debit the expense account and credit the liability account until the penalties and interest is paid.
Are taxpayers required to withhold taxes under the law?
Yes. If not, they can be subject to penalties.
Can I withdrawal of 401k funds to buy a vacation home in another country without paying taxes on the funds?
No. There would be penalties. See link.No. There would be penalties. See link.No. There would be penalties. See link.No. There would be penalties. See link.
What are the penalties for an unfiled tax return?
It is okay not to file taxes if per the IRS instructions you do not have to file taxes based on your income and other levels. However, if you do have to file taxes, and have not filed them, then you should get appropriate tax assistance, file the necessary forms and returns, and avoid various types of IRS interest charges and other penalties.
Can I get out of paying my back taxes?
Paying taxes varies by your income bracket and the state that you live in. Any taxes that you do owe must be paid to avoid your wages being garnished and other harsh penalties.
Is interest still owed on taxes in a bankruptcy?
Yes...and generally granted to the jurisdicition...but penalties are frequently dismissed.
Can you file back taxes for previous years?
Yes you can, but you might incur some penalties if you owed money.
How do I file back taxes to minimize penalties?
The best way for you to file back taxes is to seek assistance from a professional tax preparer or preferably a CPA. The will know all of the information and actions that are needed to minimize the penalties. They will know what to say to the IRS when you contact them and the proper paperwork that is required.
What kind of federal penalties can one expect with unpaid taxes?
You can expect to be hit with fees and assessments for the past due taxes. You could also serve jail time.
What would happen if you didn't pay taxes?
You would probably end up in prison. Or, you could be heavily fined, with added penalties, and forced to pay back taxes.
What if you don't file income taxes?
Eventually the IRS (or state tax board) will notice, do your taxes for you (usually extremely badly - in their favor, of course), and send you a letter demanding payment of the taxes along with interest and penalties.
What happens if you don't file taxes by the deadline?
If you don't file your taxes and are due a refund, the U.S. Treasury simply keeps your "donation." However, if you owe additional tax, file your return right away. The penalties for not filing are much higher than the penalties for not paying, and the longer you wait, the worse it gets. Please see the related link for information on the penalties for not meeting the deadline.
