TNL US Tax Thread 2014

[George]

If you're self employed you're still getting 1099-MISC from those you service. Trust me, unless your operation is 100% cash (and even then they have their ways) they know how you're making money.

[Fe 26]

so, what do they do?

[Josh]

Your mother.

[Diff-chan]

How many times (or how long) can you defer submitting your tax return?

If you owe the gubment, 0 days.

so, what do they do?

They can make your life miserable. I've seen it happen before.

Render unto Caesar the things that are Caesar's.

Trust me, unless your operation is 100% cash (and even then they have their ways) they know how you're making money.

The classic example is that they will check the water bill from laundromats.

[Fe 26]

My dad's filed extensions and nothing ever came of it. And I'm sure he owed them money, otherwise he wouldn't have filed it.

(why would you file an extension if you didn't owe money?)

[Josh]

Laziness probably.

[George]

You can file an extension for all kinds of reasons, but mostly it's because you haven't decided how you want to file (Married filing joint, separate, etc.) or if you don't have all the documents you need to file before the due date. You're missing the point though. Even if your dad never files a return, the IRS has an idea of what he would have owed because tax documents that went to him also went to the IRS from the entity that furnished it to him. An individual filing a return is mostly just reiterating information that has already been received by the IRS from other sources, and also applying for various available tax credits on their own behalf. Just give it up, dude. You and your dad are not going to outwit the IRS.

[Diff-chan]

My dad's filed extensions and nothing ever came of it. And I'm sure he owed them money, otherwise he wouldn't have filed it.

(why would you file an extension if you didn't owe money?)

You file an extension if you can't prepare the forms on time but you stil need to pay the money you owe by April 15th.

[Fe 26]

what happens if you don't pay it by april 15th and you're self employed?

[Fe 26]

I looked it up myself

If you haven't paid at least 100 percent of the tax you owe by April 15, 2013 you'll end up owing a late payment penalty of 0.5 percent per month until the tax is paid. The maximum late payment penalty is 25 percent of the amount due. You'll also owe interest on whatever amount you didn't pay by April 15.

someone correct me on this, but are they saying that your penalty goes up .5% each month, so first month is it .5%, then 1%, then 1.5% and so on? That would mean you could go about 4 years before hitting the max penalty. And only 6% in the first year.