When To File Taxes

Welcome to whentofiletaxes.org! Learn when and how to file taxes, filing duedates and more.

Filing Taxes in the U.S.

Many individuals wonder where and when to file taxes in the U.S. However, filing taxes in North America is quite simple, even if you decide to do it yourself.

Beginning January 1 of any given year, a person may file taxes for work which was done the previous year, i.e. on January 1, 2012 one can begin filing for work done and income received during 2011. Ideally, employees do not file their taxes until they are given their W2 forms which are passed out or mailed by their employer. If they are no longer employed there, the form will be mailed. After receiving their W2, an employee can begin filing their taxes. Depending on their status, they will need to choose the needed forms. If a person has no children, no assets to file, and made less than $100,000 in income, they may file a 1040EZ. This form is quite simple, as the directions are on each line as to what needs to be done. However, if there are children in the household a 1040A will be needed. Have children, tuition costs and assets? File a 1040 because it is much more detailed concerning things which you will need to file for. This form is a bit more difficult for someone who is new to filing taxes, however, there are still directions given to aid in correct completion.

Earned income is extra money given to those who have worked, but did not make a certain amount of money. It can vary, depending on your household situation, so its best to check. You must also have children in order to qualify for this. The money can add possible thousands to your refund, so it is important to see if you qualify. A great number of parents do, as the threshold tends to be high. This is an additional form, just as other forms which are available to those in certain situations. Again, if you have a simple tax situation, choose a 1040 EZ, follow the instructions and you are done.

Once the forms are completed, you must look inside your tax book and get the address on where to mail it. The address varies, as it depends on what kind of form you are sending. The forms must be postmarked no later than April 15 at midnight. If it is late, a penalty will be added, unless the time limit is extended.

If after reading the above guidelines you are still not sure when and how to file taxes in your particular situation, it is highly recommended that you talk to a professional accountant who will help you sort things out.

Most Famous Tax Evasion Scandals

Tax evasion has always been shunned upon by all citizens of a state. Yet, it is inevitable that there are individuals who are run by greed to commit such illegal crimes. Here are some of the most notorious tax evasion scandals across the globe.

UK Prime Minister Tax Evasion. Being one of the elites, British Prime Minister David Cameron never thought that he would be caught red handed. Due to the supremacy of power from his family, everyone in the family didn’t pay any attention on paying taxes and they levied each one in greater feats. Soon, due to the rumors of the Prime Minister’s underground actions, it was found out that he robbed millions from his citizens and paid wealthy families and corrupt bankers. Right now, he is at the brink of collapse.

The Liechtenstein Scandal. Other than the fall of the Berlin wall, this tax evasion scandal may be one of the most historical events in Germany. Liechtenstein connection was a world-renowned company that soon crumbled down. It gave 900 wealthy Germans the opportunity to evade taxpaying which lead to a 4-billion-euro worth of coveted taxes.

KPMG Tax Shelter Fraud. This controversy has yet to put to rest. It was alleged that US tax shelters had turned illegal causing shipping of taxes to wealthy individuals. These abusive tax shelters soon were exposed in 2003 but further actions were found to be futile. Up to now, pieces of evidence are accumulated to prove KPMG has done a corruptive means to its citizens.

The Canadian Tax Fraud Scandal. Amway was fined with 25 million dollars for their criminal acts imprisoning almost 80% of the company’s staff members. The operation started with minimal withholdings but soon developed into a grandeur tax evading giant. This great frontier of Amway was shut down instantly leaving families in great turmoil.

Complications of not filing your taxes on time

There are a significant number of people who fails to pay their taxes on time. Some do it deliberately while others are unable to pay because of various inevitable situations. The lateness results to complications and consequences even if the taxes are paid a day late. The only way a late tax payment can avoid the complications is by giving a reasonable cause for the delay such as not receiving wages and tax information from the employer.

According to the IRS rules, any late payment of tax leads to the tax payer paying more than they would have if they had paid on time. The late payment is subjected to the current federal short term interest rates and an addition of three percent of the tax owed. This can add up to up to twenty five percent of the taxes owed which might become a lot of money depending on the amount owed. The IRS charges interest on the penalties if the defaulter had been sent notices advising them to pay within a given period. If the people with tax debts accept to pay, the IRS has a program where tax debts can be paid in installments especially for people who had failed to pay because they had no money.

For those people who deliberately fail to pay taxes on time, the IRS can decide to file criminal charges so as to compel them to pay up. The court might rule that the tax be deducted from the defaulter’s salaries until the owed taxes and penalties are fully recovered. The court can also sentence the defaulter to a jail term for the offence of not paying taxes. This can be devastating both financially and personally. Thus it is advisable to strive and pay taxes on time so as to avoid the negative consequences.

Tips to File Taxes on Time

Taxation is the sum of money imposed by the government to its support for its facilities and services. Government finances itself largely through taxes. It is charged or an obligation. It’s like owing a portion of your income to the government. Paying tax is a must for everyone, failure to comply is punishable by law.

Preparing your tax could be overwhelming however once it’s done, it would be rewarding. Getting an early start in filing your tax can make everything easier. All you need is patience and follow the instructions carefully. Start with gathering of records like receipts, cancelled checks and other documents as proof of your deductions. Try considering other options for filing your tax return. Weigh your different options and choose the one that suits best your needs. Consider direct deposit, you will be able to receive it faster than paper check. Don’t rush anything. People tend to commit mistakes when they rush things over. Mistakes will slow down the taxation process and the processing of your tax return. Make sure to double check your Social Security Numbers as it is the common mistake of taxpayers. Lastly, don’t panic. This way, your tax filing process will run smoother and stress-free.

Remember to pay your taxes on time. It can save you all the troubles and will help you save more money by taking of tax credits and exemptions. You can also avoid penalty charges and possible interest. You should file your return and pay what you can to keep away from the late filing penalty.

What Is Tax?

Taxes are financial charged imposed on the taxpayer by the government. Failure to pay is punishable by law. It is charged by the government on an income, product or service. The purpose of taxation is to finance government functional equivalents like expense for war, enforcement of law, to finance public goods and services such as street lighting and cleaning of the streets. Some services include education system, health care systems, pensions for the elderly, public transportation and unemployment benefits. There are many other services offered to citizens managed effectively by the system.

There are different taxes and they vary in rates. The tax system is based on the person’s ability to pay. This is done to distribute the tax burden among taxpayers or corporation involved. The tax system is often reflected by the values of those in power. The nation is involved in making the choice in – who will pay taxes, how much will they pay and how the taxes would be collected and spent.

Taxes may be referred to as direct tax and indirect tax. Direct tax is charged directly from personal or corporate income, while in indirect tax is charged on the price of the product or service. It is also imposed on events, rights and other activities.