Video instructions and help with filling out and completing Form 2220 Taxable

Instructions and Help about Form 2220 Taxable

It's very important that you do your very very best tax returns filed timely either by April fifteenth are under extension the reason is the penalty for filing late is very harsh the penalty is 5% per month or any part thereof so in other words if you're one day late the penalty is 5% of the total tax you owe if you're four months and one day late it's 25% and the penalty is capped out at 25% but that can be very harsh so my advice is first get that returned filed even if you think you're going to have to amend it or even if you don't have the money to pay your tax get it filed and you could invoice that very harsh penalty now there's another penalty failure to pay the failure to pay penalty is generally 1/2 of 1% per month which caps out at 25% as well so that's the equivalent of 6 percent per annum so in addition to all of these you have interest in interest right now for the last number of years has been relatively small about 3 percent per annum but when you add all these penalties together the first the failure to file the failure to pay of approximately 6 percent and 3 percent of interest that's about 9 or 10 percent because the interest is on the tax it's on the penalty and it's on the interest and interest is compounded daily now the IRS has many many many other penalties which is well beyond the scope of this and the IRS and the last number of years is more and more aggressive in asserting and trying to collect all of these penalties there ways these penalties can be abated or eliminated and it's important that you come to a lawyer or qualified CPA about trying to get these penalties abated